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DWF Ventures Analyzes Impact of $TRUMP Memecoin Surge on Crypto Marketsby@ishanpandey
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DWF Ventures Analyzes Impact of $TRUMP Memecoin Surge on Crypto Markets

by Ishan Pandey
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Ishan Pandey

@ishanpandey

Building and Covering the latest events, insights and views in...

3 min readJanuary 28th, 2025
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Two days before the inauguration, $TRUMP memecoin was introduced into the crypto market. The token’s market capitalization was reported to be over $70 billion within the first 48 hours. The surge not only attracted the old-time investors but also the general population as shown by the increase in search engine queries.
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Ishan Pandey

Ishan Pandey

@ishanpandey

Building and Covering the latest events, insights and views in the AI and Web3 ecosystem.

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Two days before the inauguration, $TRUMP memecoin was introduced into the crypto market and the market capitalization of the token rose to over $70 billion within the first 48 hours. DWF Ventures, a leading player in the blockchain investment sector, has taken much interest in this event and its implications. The discussion of $TRUMP memecoin two days before the inauguration created a stir in the crypto market and the token’s market capitalization was reported to be over $70 billion within the first 48 hours.


This surge not only attracted the old-time investors but also the general population as shown by the increase in search engine queries and coverage by the main media. DWF Ventures argues that the intense focus on $TRUMP memecoin shows the efficiency of the crypto market where celebrity endorsements and high profile launches can influence the investors’ behavior. Such events analysts say are known to induce short-term increases in liquidity but at the expense of lack of sustainable growth without complementary technological or market development.


A major first-order effect of the $TRUMP memecoin launch was the focus it created on the Solana blockchain. $TRUMP transactions were first made on Solana and only later were the coordinates of the asset listed on CEX. This exclusivity led to a lot of activity in Solana’s DEXs including Jupiter Exchange, Meteora AG, and Raydium Protocol. For instance, data provided by DWF Ventures revealed that Solana’s total DEX volume hit $12 billion on January 18, breaking new ground for all blockchains.


However, DWF Ventures notes that the surge also revealed some of the Solana ecosystem’s weaknesses. At the time of the highest load, the network failure rate was about 40%, which is 20% more than the usual failure rate. Furthermore, gas fees rose to more than 0.01 SOL, which is approximately $2.5, which is quite high compared to the normal gas fees. Despite these challenges, such a high load is proof of the network’s capacity and Solana’s potential to become a mainstream blockchain.


With regard to the direct market responses, DWF Ventures is beginning to consider the secondary effects of the $TRUMP phenomenon. The firm’s research reveals that the launch of famous memecoins such as $TRUMP may lead to more strict controls. The study has pointed out that a large number of tokens will be available for trading in the market shortly, and this may cause a lot of price fluctuations and lose the small investor who does not understand how tokens work.


In addition, DWF Ventures looks at the general trend of hypertokenization, which is the ability to create and trade tokens easily. The platforms that provide the “one-click” token launch are making it easier for politicians, celebrities, and influencers to get into the crypto space. This democratization of innovation is, however, a concern regarding the saturation of markets and the fundamental value of such tokens.


From a regulatory point of view, DWF Ventures explains that the growth of memecoins invested in by famous people may speed up the process of discussing regulation of digital assets. The analysts are of the opinion that there is the need for clear rules to be put in place to protect investors and to ensure that the cryptocurrency market continues to grow positively.


In the last analysis, DWF Ventures mentions that the $TRUMP memecoin event is a clear example of how the cryptocurrency market can be volatile and spontaneous. Nevertheless, such events can trigger almost instant growth, attract new investors, and, at the same time, reveal the need for strong structure and proper regulation to avoid volatility.


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Vested Interest Disclosure: This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYO


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Ishan Pandey@ishanpandey
Building and Covering the latest events, insights and views in the AI and Web3 ecosystem.

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