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The hot ball of money moved around, leaving the total crypto market cap listless, Mirai Labs' Garrison Yang told CoinDesk.
Jan 27, 2025, 5:24 a.m. UTC
While the TRUMP token brought considerable attention to the crypto market, it struggled to onboard substantial new capital. That's the takeaway from the comparative analysis of TRUMP's market cap versus the total value of the crypto market.
The memecoin launched with significant impact last week, reaching a market cap of over $10 billion on its first day, but has since dropped to approximately $5.3 billion at the time of writing. Meanwhile, the total market cap of all cryptocurrencies has fluctuated around $3.5 trillion, according to data from TradingView and CoinDesk.
"While $TRUMP is now worth billions, the total crypto market cap has barely moved. And while it's a really interesting headline to say that 400,000 users were onboarded, Phantom was the number one app for a little bit, and it feels like the whole world was paying attention to this token, I think what we actually did was onboard a lot of attention," Garrison Yang, co-founder of leading international Web3 gaming studio Mirai Labs, said in an email.
"When it comes to actual liquidity and the capital that entered the token, very little of it (on a value basis) was from new people. Unfortunately, we ended up moving the hot ball of money around. And you can see this, especially on-chain with alts on Solana, and the amount of liquidity rapidly funneled into the Solana ecosystem," Yang added.
Research by Chainalysis last week showed that roughly 50% of TRUMP and MELANIA token holders were likely first-time Solana-based token buyers.
TRUMP market cap versus total crypto market cap. (TradingView/CoinDesk)
Omkar Godbole
Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
