Official Trump (Trump) bouncing 52% on April 23 after the announcement of an exclusive in-person dinner for top token holders with US President Donald Trump. For some crypto advocates, this marks the end of the bare market, especially as Bitcoin (BTC) bounces back above $93,000, but raises doubts about how sustainable Trump’s memo coin rally is.
From a purely performance standpoint, the official Trump (Trump) memo coin is disappointing. After rising above $75 on the launch day, the profit quickly disappeared as investors noticed a concentration of tokens and a short-term vesting period.
Justifying Trump’s current market capitalization of $2.6 billion is seemingly difficult, considering 80% of the supply was allocated to founders and entities managed by Trump.
For comparison, well-established projects such as Arbitrum (ARB), Jupiter (JUP), and Maker (MKR) hold less than $1.6 billion in capital. These token valuations stem from repurchase using the Treasury reserves or direct benefits in staking and denial mechanisms. For example, Arbitrum, a leading Ethereum Layer-2 scaling solution, owns a total value lock (TVL) of $2.4 billion.
According to data from Defilama, Solana’s leading decentralized exchange (DEX) boasts $2.3 billion in deposits and has earned $76.6 million in fees over the past 30 days. Meanwhile, Sky (formerly the manufacturer), the project behind the highly successful Dai Stablecoin, holds $5.9 billion and $28.6 million for 30-day expenses.
Trump is still ranked in the top 10 for trading activities
In addition to being listed on major exchanges such as Binance, Bybit, OKX, Coinbase, Upbit and Kraken, as well as being often promoted on social media by Trump, Memecoin holds an impressive share in the derivatives market. In particular, the open interest on its futures is $700 million, making it the top ten overall.
Projects that have established projects with market capitalizations of over $6 billion, such as ChainLink (Link), Litecoin (LTC), and Polkadot (DOT), have more open interest in futures than Trump. Still, demand for the futures market allows large traders to take part in the action, but they are not necessarily optimistic as long (buyers) and shorts (sellers) always match.
Trump is currently 84% below his all-time high, but remains the top 10 token in terms of volume. In fact, only four cryptocurrencies outweigh Trump’s impressive $3.84 billion 24-hour sales, excluding Stablecoins, were over four cryptocurrencies.
Despite the enormous trading activity, a single promotional event with President Trump is unlikely to create lasting demand for Trump’s Memecoin, checking the current $13.50 price tag. Unless the project eases investors’ concerns about unlocking tokens, there is little way to justify 50% premiums and cryptocurrencies that provide growth utility and perspective.
It is worth noting that another memo coin with no realistic utility, Shiba Inu (Shib), is currently trading at a market capitalization of $8 billion.
