Speculation about Donald Trumpsupported Solana Meme Coin DJT leads to selloff of PoliFi Tokens
In preparation for the upcoming United States presidential election, leading candidates Donald Trump and Joe Biden have embraced the cryptocurrency industry to appeal to their supporters. One of the latest crypto-political ventures is TrumpCoin (DJT), a meme coin based on the Solana blockchain, which surged by over 368 percent in the past day, reaching a trading price of approximately $0.025 during the early New York trading session on Tuesday.
Reports of a Trump-endorsed meme coin first surfaced from Pirate Wires, an unconventional media outlet, through its X official account. However, Ryan Selkis, the CEO and founder of Messari crypto, cautioned investors to approach DJT with caution, suggesting that the Federal Reserve might be involved in the project.
Market Analysis of DJT
The rapid rise of DJT has resulted in its daily trading volume surpassing its total market capitalization at the time of this article. According to data from Birdeye, DJT has a fully diluted market cap of approximately $248 million and a daily trading volume of about $372 million. Notably, DJT has locked liquidity worth $86 million on the Solana blockchain and boasts over 10,000 holders.
On the other hand
Following the surge in interest in DJT, other meme coin projects associated with Trump have experienced significant declines in the past 24 hours. For example, the Ethereum-based MAGA (TRUMP) token dropped by more than 36 percent to trade at around $6.87, while another Trump-focused meme coin, MAGA Again (MAGAA), plummeted by over 47 percent to trade at $0.013 on Tuesday.
Looking at the bigger picture
The increased focus on cryptocurrency discussions by the US political parties indicates a growing acceptance of web3 and digital assets. Furthermore, the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States is expected to attract more institutional investors to the cryptocurrency market in the near future.