The “official” memecoin of incoming US President Donald Trump has increased interest in Solana (SOL), leading to an increase in both its price and trading volume, which in turn helped the total dollar value locked (TVL) on the network surpass $10 billion. for the first time since the collapse of FTX.
Donald Trump’s choice to issue memecoin on Solana helped SOL rise more than 23% since its announcement, moving the price of the cryptocurrency to a new all-time high and boosting the value of the dollar locked in its smart contracts. Data from DeFiLlama shows that Solana’s TVL now stands at $12 billion, a new all-time high.
Measured in SOL, the value locked on the network has been growing steadily since the beginning of last year and recently exceeded 45 million SOL. This level had not been seen since August 2022, before the collapse of FTX, whose co-founder Sam Bankman-Fried was one of Solana’s main proponents.
The launch of Donald Trump’s official memecoin, $TRUMP, was coordinated by CIC Digital LLC, a Trump-affiliated organization, the BBC reported. Together with Fight Fight Fight LLC, they own 80% of the memecoin supply that will be released over the next three years.
Memecoin, which has been dominating headlines in the space and will be listed on major cryptocurrency exchanges including Binance and Coinbase, is currently the third largest on all blockchains behind Shiba Inu and Dogecoin in terms of market capitalization. market.
The token was launched by a team that included Solana, Jupiter and Meteora ecosystem protocols, and sparked a trading frenzy across the network’s decentralized exchanges, with DeFiLlama showing Raydium surpassing Tether in generating 24-hour fees.
Moonshot, the memecoin trading platform featured on the memecoin website posted on social media by President-elect Donald Trump, reported a trading volume of nearly $400 million in 12 hours after the memecoin launch, adding that added more than 200,000 users to the network in the process. .
https://x.com/moonshot/status/1880659326395666759
The network choice also helped increase the perceived likelihood of a Solana exchange-traded fund (ETF) launching in the first half of the year. Polymarket merchants went from considering a 43% probability that such a product would be launched before July 31 to 61%.
The trading frenzy occurred over the weekend, when trading volumes are typically thin as many institutional investors and professional traders are less active. This means that speculative activity on the network could well continue throughout the week.
Beyond that, the launch of memecoin is bringing Solana an influx of new users and presents the network, which has suffered multiple major outages, an opportunity to show its strength. If it stands the test, the Solana ecosystem could continue to receive important inputs.
The introduction of the Trump token also signals the US government’s change of stance towards the cryptocurrency sector and offers it greater legitimacy, as the president of the world’s largest economy has literally launched a memecoin based on Solarium.
The launch of memecoin signals a “shift in US fintech policy toward much more permissive innovation,” said Erik Voorhees, founder of Crypto OG and Shapeshifter.
