Incoming US President Donald Trump’s “official” memecoin has soared 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 top $10 billion for the first time since the collapse of FTX.
Donald Trump’s choice to issue a memecoin in Solana has helped SOL rise more than 23% since its announcement, moving the price of the cryptocurrency to a new all-time high and increasing the value of the dollar on -locked in its smart contracts. Data from DeFiLlama show TVL in Solana is now at $12 billion, a new all-time high.
Measured in SOL, the amount locked in the network has been growing steadily since the beginning of last year and recently topped 45 million SOL. This level has not been seen since August 2022, before the FTX crash, whose co-founder Sam Bankman-Fried is a key proponent of Solana.
The launch of Donald Trump’s official memecoin, $TRUMP, was coordinated by CIC Digital LLC, a Trump-related organization, the 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 is dominating headlines in the space and destined to be listed on major cryptocurrency exchanges including Binance and Coinbase, is currently the third largest of all blockchains behind Shiba Inu and Dogecoin in terms of market capitalization.
The token was launched by a team with the Solana ecosystem protocols Jupiter and Meteora and led to a trading frenzy on decentralized network exchanges, where DeFiLlama represents Raydium surpassed Tether to 24-hour charge generation.
Moonshot, the memecoin trading platform featured on the memecoin website posted on social media by President-elect Donald Trump, reported a 12-hour trading volume of nearly $400 million after launching memecoin, and added it onboarded over 200,000 users to the network in the process. .
https://x.com/moonshot/status/1880659326395666759
The network selection also helped boost the perceived viability of a spot Solana exchange-traded fund (ETF) launched in the first half of the year. Polymarket traders from weighing a 43% probability that such a product will be launched on July 31, to 61%.
The trading frenzy came over the weekend, when trading volume is generally muted as many institutional investors and professional traders are less active. This means that speculative activity on the network can continue throughout the week.
Beyond that, the launch of memecoin brings Solana an influx of new users and exposes the network, which has suffered multiple large losseswith a chance to show its resilience. If it survives the test, the Solana ecosystem could continue to see significant inflows.
The introduction of Trump’s token also indicates a change in the position of the US government towards the cryptocurrency sector and it offers increased legitimacy, since the President of the world’s largest economy literally launched a Solana-based memecoin.
Memecoin’s launch signals “a shift in US fintech policy toward more permissive innovation,” crypto OG and Shapeshifter founder Erik Voorhees commented.
