This launch had a significant impact on the cryptocurrency market. Solana recorded its highest daily trading volume, with DefiLlama reporting $85 billion in transactions. However, many users experienced network congestion and failed transactions. Moonshot, a trading platform, added over 400,000 new users in less than 24 hours, marking the largest single-day on-chain user growth in history.

Market reactions were mixed. Some viewed this as a sign of broader cryptocurrency adoption, given that a U.S. President launched a token on-chain and attracted new users. Others raised concerns about token distribution, noting that the Trump administration appeared to control 80% of the supply, sparking fears of insider allocation. Locked tokens were distributed to six entities labeled "Founders and CIC Digital 1-6," with lock-up periods ranging from 3 to 12 months. After the lock-up, 10% or 25% would be unlocked initially, followed by daily releases over two years.

As the dust settled, attention turned to what this means for market dynamics and whether it signals a lasting shift or another short-lived cycle.

Sunny Shi (@defi_monk)'s Perspective:

The launch of the $TRUMP token and its market reaction can be seen as an "early arrival" event, offering insights into the current cryptocurrency cycle's trajectory and potential duration. The token's rapid growth also highlights the progress of the crypto industry, particularly Solana, in recent years. This demonstrates blockchain's potential as a platform for trading anything, anytime, anywhere, with promising future prospects.

TRUMP 70 billion market cap surge in April 2021, one of the largest user growth events in crypto history. With over 400,000 users downloading Moonshot (listed as a trading platform on the token's website), it's clear that retail participation was significant. However, it's worth noting that DOGE's 2021 surge marked the late stage of that cycle, as it compressed months of user growth into a single moment.

Many in the crypto community are dissatisfied with the continued prominence of meme coins, as the "Solana casino" seems less appealing than innovative areas like DeFi. However, this phenomenon reflects growing demand for blockchain space, driven by advancements in execution environments like Solana, which offer faster and cheaper user experiences. This is a significant win for Solana. Within the first three hours of trading, TRUMP−relatedtransactionsexceededTRUMP−relatedtransactionsexceeded1 billion, and its market cap reached 80billioninunder24hours.Additionally,Hyperliquidoffered80billioninunder24hours.Additionally,HyperliquidofferedTRUMP perpetual contracts within hours of the token's launch, showcasing the ability of on-chain protocols to rapidly establish liquid markets to meet speculative demand.

Notably, $TRUMP's valuation surpassed that of Trump Media & Technology Group (DJT), with higher trading volumes, even though DJT has been the primary speculative asset tied to Trump's influence. If future trading moves on-chain, this event proves the industry is heading in the right direction.

Kinji Steimetz (@SteimetzKinji)'s Perspective:

The launch of $TRUMP is not just another meme coin—it reflects the Trump administration's supportive stance toward cryptocurrencies. A sitting President endorsing and launching a token signifies a clear shift from previous administrations, embracing on-chain digital assets. While the short-term market impact remains uncertain, the broader implications are undeniable. This isn't just about regulation or campaign promotion; it's a direct entry into the crypto space, indicating that the current administration sees value in developing digital assets.

However, winning this battle doesn't mean the war is over. The launch of TRUMPandTRUMPandMELANIA also reveals another side: the current administration's support for crypto appears more opportunistic than rooted in a belief in decentralization or financial autonomy. For now, interests align, and crypto benefits from Trump's endorsement. But if this alignment breaks—whether due to shifting policy priorities, political changes, or succession plans—crypto could once again become a target.

This administration supports crypto not because it believes in its core values but because it sees political benefits. This distinction is crucial, as it introduces greater risks: crypto may only remain popular as long as it serves political purposes. While this concern isn't urgent now, it's worth keeping in mind, as the same administration that brings optimism today could become predatory if interests diverge.

Crypto is in the spotlight now, but what will happen at some point in the next four years?

Dylan Bane (@dylanebane)'s Perspective:

The launch of TRUMPandTRUMPandMELANIA tokens foreshadows the chaotic nature of Trump's crypto policies over the next four years. Trump's first term was characterized by unpredictability, sensationalism, and a monopoly on media attention. In the crypto space, Trump may have found the market best suited to his personality, where he can dominate narratives and monetize attention.

Trump has every reason to leverage crypto to quickly increase liquid assets. During his presidential campaign, he faced over 500millioninfinesfromacivillawsuit,threateninghisliquidassets.Lastyear,Trump′snetworthfluctuatedbetween500millioninfinesfromacivillawsuit,threateninghisliquidassets.Lastyear,Trump′snetworthfluctuatedbetween3-8 billion, but much of his wealth was tied up in TMTG stock vesting periods, intangible brand value, and real estate, leaving him vulnerable to cash shortages.

The TRUMPtokenlaunchchangedthisovernight.Withinaday,Trump′snetworthreportedlyincreasedtenfoldtooverTRUMPtokenlaunchchangedthisovernight.Withinaday,Trump′snetworthreportedlyincreasedtenfoldtoover60 billion, with the token accounting for 90% of his wealth. While Trump publicly downplayed the significance of this windfall, calling it "small money" for "those people" (referring to tech giants shaping AI policies), his extensive social media promotion of the token and his sons' active involvement in projects like World Liberty Financial DeFi suggest he takes crypto very seriously behind the scenes.

Trump now knows he can dominate the crypto market without significant repercussions. In an industry driven by narratives and attention, the market may be at Trump's mercy over the next four years, with random token launches, exaggerated policy promises, and sudden shifts in crypto policy advisors. The sudden launch of $MELANIA, which triggered a sell-off in AI and meme tokens and strained Solana's infrastructure, is a precursor to what may become a regular occurrence.

This creates an interesting dynamic: mainstream and institutionally-backed tokens may benefit from pro-crypto regulations and close industry ties with Trump, while smaller-cap tokens targeting retail investors will react violently to his every move. These retail-focused tokens now face greater volatility and risk, as Trump could trigger liquidity black holes at any moment. Trump's unique personality combined with his support for crypto will undoubtedly create unprecedented scenarios in the crypto market.

Whether tying meme coins and retail favorites to the unpredictability of Trump's second term is beneficial for the industry remains to be seen.

Andrew Dyer (@0xSynthesis1)'s Perspective:

In an alternate universe, if MELANIAhadn′tbeenlaunched,MELANIAhadn′tbeenlaunched,TRUMP might have surged to $100, and new users entering through platforms like Moonshot might have continued investing in crypto after their first profitable trade. However, the second token launch disrupted market sentiment, draining 95% of liquidity and leaving participants confused about the market's next move. This event interrupted the strong momentum of the agent sector, and uncertainty now looms over where to invest. However, with no other dominant narrative emerging and AI remaining a compelling area of development, I believe funds will flow back into this direction once Bitcoin stabilizes.

While we might view this event as a significant retail onboarding moment, we must consider its relative impact. Reports indicate that over 80% of TRUMPholdershavelessthanTRUMPholdershavelessthan1,000 in their wallets. Even with 400,000 new users bringing 1,000eachintotheecosystem,thisamountstolessthanhalfofthe1,000eachintotheecosystem,thisamountstolessthanhalfofthe800 million inflows Bitcoin ETFs received on the 21st. Thus, $TRUMP's impact on short-term on-chain liquidity is notable, but its effect on overall market liquidity may be limited. Considering the formation of new working groups led by pro-crypto regulators, the repeal of SAB-121, and Senator Lummis' leadership in advancing crypto-friendly policies, the changes needed to drive mid-term inflows are already underway.