Melania Rises, Official Trump Falls: Experts Say Meme Coins Signal 'Paradigm Shift' And Potential Blow To TradFi

As Donald Trump takes office as U.S. president on Monday, his meme coin TRUMP/USD plummeted in value, while Melania Trump's MELANIA/USD surged by nearly 40% within 24 hours, igniting discussions about the growing power of crypto, and the potential for wider adoption.

What Happened: According to data from CoinGecko, MELANIA experienced a dramatic increase in value, surging nearly 40% within 24 hours.

The token’s price peaked at just over $13, before settling around $8.74 at last check on Monday. MELANIA also saw a massive leap in 24-hour trading volume, jumping from $1.33 billion on Jan. 19 to $7.6 billion on Jan. 20.

With these gains, the market capitalization reached $1.54 billion, placing it among the top 100 crypto assets.

In contrast, the Official Trump meme coin saw a decline in value. At last check on Monday, the token hovered at around $52, down 11.4%. The all-time high is $72.42.

However, this dip did not deter traders. Trading volume exceeded $47 billion on the same day. It’s now placed among the top 20 crypto assets by market capitalization, with a valuation of roughly $10 billion.

These movements have prompted a variety of expert analyses.

Also Read: Market Seeks Further Information On Utilization Of 80% TRUMP Token Supply: Report

QCP Capital stated that on the "global reach and speed at which TRUMP surged." It’s a sign of a "paradigm shift in capital formation" and evidence that crypto is increasingly mainstream, the firm noted.

They also speculated that the Solana blockchain might be viewed more favorably by regulators following Trump’s launch of his memecoin on the platform. The launch could expedite the approval of a Solana SOL/USD exchange-traded fund, or ETF.

QCP Capital further posited that such launches are likely to attract significant retail inflows, and that Bitcoin BTC/USD appeared poised to break higher based on funding rates on Deribit.

The firm suggests the launch of the TRUMP token is viewed by both retail investors and institutions as evidence of a pro-crypto stance by the new President.

Presto Research offered another perspective, stating that Trump is "serious about crypto," viewing the launch as "an attack on Wall Street's monopoly by legitimizing online capital formation."

They emphasized the need for traditional finance to embrace blockchain technology, or face potential marginalization.

Solana is experiencing a similar "2017 Ethereum ETH/USD moment,” the experts said.

They likened the hype surrounding the token to the ICO craze of 2017. Like Ethereum, the TRUMP launch has cemented Solana's status as a serious contender in the blockchain space.

Read Next:

• Coinbase Launches Bitcoin-Backed Loans For US Users

Image: Shutterstock