Price of the Official Trump (TRUMP) token surged by 52% on April 23 following the announcement of an upcoming closed-door dinner with the current U.S. President Donald Trump for major token holders. The event sparked renewed interest in the token and discussions about a potential end to the "bear" market.
Questionable Sustainability
Despite the sharp spike, many market participants remain uncertain about the sustainability of the rally. Since its launch, TRUMP has exhibited volatility — initially priced above $75, it quickly plummeted. Investors noted the high concentration of tokens held by the project team: 80% of the supply is reportedly controlled by Trump and affiliated entities. This raised concerns about manipulation and the lack of long-term viability.
Market Reassessment
Currently, TRUMP's market capitalization stands at $2.47 billion — a figure that even seasoned analysts view with skepticism. For comparison: Arbitrum (ARB) has a TVL of $2.4 billion and trades at a market cap below $1.6 billion. Jupiter (JUP), the largest DEX on Solana, holds $2.3 billion in deposits and generated $76.6 million in fees over the past 30 days. The Sky project (formerly Maker), managing the DAI stablecoin, shows $5.9 billion in TVL and $28.6 million in monthly fee revenue.
Despite lacking clear utility, TRUMP remains one of the most traded assets — with a 24-hour trading volume reaching $5.01 billion, trailing only four other cryptocurrencies (excluding stablecoins), according to CoinMarketCap. The token is actively traded on Binance, Bybit, OKX, Coinbase, Upbit, and Kraken, and ranks among the top derivatives on the crypto market — with open interest on TRUMP contracts estimated at $700 million, placing it in the top ten.
Risks and Expectations
Even at the current price of $12.41, the token is still trading 84% below its all-time high. Nevertheless, TRUMP surpasses major cryptocurrencies such as Chainlink (LINK), Litecoin (LTC), and Polkadot (DOT) in open interest. However, high demand for derivatives does not imply optimism — in futures markets, long and short positions are always balanced. Therefore, this sudden surge in interest may prove short-lived.
The Market Does Not Forgive Haste
One investor parted with 630,339 TRUMP tokens worth nearly $5.5 million just hours before the dinner with Trump was announced. After the news broke, the token’s price soared, and that same amount would have been worth about $4.5 million more — the trader took a loss due to a lack of patience.
Another market participant, immediately after the event was announced, spent $5 million in USDC to purchase 407,467 TRUMP tokens, betting on further price growth.
Position Among Memecoins
Compared to Shiba Inu (SHIB), which maintains a market cap of $7.8 billion despite offering no utility, it’s possible that the "official" memecoin of the U.S. President could aim for a higher valuation. According to analysts, this leaves room for speculative growth to $30 and beyond.
Registration to attend the dinner is available on the official website.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.