The TRUMP meme coin, the official cryptocurrency of Donald Trump, took the crypto world by storm when it launched on Friday. In just a few hours, it became the hottest topic on the market, captivating investors and enthusiasts alike. By Saturday morning, as the United States woke up to the news, TRUMP coin had soared to $30, a staggering 12,000% increase from its launch price.
The exponential rebound that occurred overnight now appears to be just the beginning. The coin’s meteoric rise has virtually no impact on its increasingly vertical chart. With a staggering market cap of $6 billion and a fully diluted valuation of $30 billion, TRUMP coin is quickly establishing itself as a phenomenon in the meme coin category.
For early investors, the returns were life-changing. A modest investment of $10,000 at launch is now worth an incredible $1.2 million, highlighting the enormous potential of this viral asset. As TRUMP coin continues to make headlines, speculation is growing as to whether this is a short-lived hype or the start of a new trend in the crypto space. With such explosive growth, all eyes are on the next move of this unprecedented coin.
TRUMP becomes the biggest coin in history
At 9:44 p.m. ET on an otherwise quiet Friday evening, President-elect Donald Trump made history by launching the $TRUMP meme coin, which has already become the largest meme coin phenomenon the market has ever seen. According to Kobbeissi’s letterA trusted voice in global capital markets commentary, TRUMP is up 9,500%, with $2.2 billion in trading volume in just 12 hours after launch.
Initially greeted with skepticism, the announcement of the launch of $TRUMP seemed so implausible that many traders assumed Trump’s account had been hacked. However, without an official statement refuting the legitimacy of the coin, trust has increased and so has the price.
By 12:45 a.m. ET, TRUMP had surpassed $10, accelerating toward a parabolic rally. In the early hours, traders witnessed unprecedented returns. One investor reportedly turned $50,000 into nearly $1.1 million in just two hours. Remarkably, TRUMP outperformed the 30-year cumulative return of the S&P 500 during this same short window.
A key factor behind the coin’s explosive price action is its limited circulating supply. Only 20% of the maximum supply, or 200 million coins, are currently on the market. Over the next 36 months, the remaining 800 million coins will be gradually released. Speculation is rife that Trump himself owns this undistributed share, which could give him substantial control over the asset.
While $TRUMP has already established itself as a phenomenon, the play’s trajectory remains a captivating spectacle. This unprecedented rally and the intrigue surrounding its supply mechanisms have made it one of the most extraordinary stories in crypto history.
Details of price development and market capitalization
The explosive rise of TRUMP coin has sparked questions about its market capitalization and fully diluted valuation (FDV). With a total supply of one billion coins, FDV, if all tokens were circulating, would be worth approximately $21 billion based on current prices. However, with only 200 million coins (20% of the total supply) currently in circulation, the market cap is around $4.2 billion. This significant disparity highlights the impact of circulating supply on valuation measures.
Price action, for now, provides limited insight into the coin’s future. There is little data to conduct meaningful technical analysis. The TRUMP chart essentially consists of a parabolic green candle, reflecting his meteoric rise in an environment dominated by media hype. This leaves the market with a crucial question: Can demand maintain current levels as the remaining 80% of supply gradually comes into circulation?
The TRUMP issuance schedule indicates how the maximum supply will be reached over the next 36 months. Skeptics argue that this influx of supply could lead to oversaturation, ultimately driving the coin’s price down to $0. On the other hand, bulls believe that the gradual nature of the schedule allows demand to keep pace. This could mitigate the risk of significant price dilution. For now, the debate continues.
Featured image of Dall-E, chart by TradingView