For the First Time Since the FTX Collapse, Solana’s Total Value Locked Tops $10B Following TRUMP Memecoin Launch.

Trump’s Memecoin Launch Fuels Solana Price Surge, Boosting Hopes for Solana ETF

Donald Trump’s official memecoin, launched on the Solana blockchain, has sparked a major surge in both the price and trading volume of Solana (SOL), while also heightening expectations for the launch of a Solana exchange-traded fund (ETF).

Trump’s $TRUMP memecoin, which he has dubbed his “official” memecoin, has driven significant interest in the Solana network. As a result, the price of SOL has soared, and the total value locked (TVL) on Solana has reached new heights, surpassing $10 billion for the first time since the FTX collapse. According to DeFiLlama, the TVL on Solana is now at an all-time high of $12 billion, signaling increased investor confidence.

Since the announcement of Trump’s memecoin, SOL has risen by more than 23%, reaching a new all-time high. The value locked in Solana’s smart contracts has grown steadily since the start of 2023, with the amount of SOL locked recently crossing the 45 million SOL mark, a level not seen since August 2022, just before the collapse of FTX and its fallout with Solana, which had been heavily backed by FTX’s Sam Bankman-Fried.

TRUMP Token Launch and Its Impact

The $TRUMP memecoin was coordinated by CIC Digital LLC, a company affiliated with the Trump Organization, and Fight Fight Fight LLC. These two entities control 80% of the token’s total supply, which will be released over the next three years. As a result, $TRUMP has quickly become the third-largest memecoin by market capitalization, trailing only Dogecoin (DOGE) and Shiba Inu (SHIB).

The memecoin’s launch has sparked a trading frenzy on Solana’s decentralized exchanges. According to DeFiLlama, Raydium, a decentralized exchange on Solana, surpassed Tether in 24-hour fee generation, showing the significant impact of the TRUMP token on the network. Moonshot, the trading platform featured on the memecoin’s official website, reported nearly $400 million in trading volume over just 12 hours and attracted more than 200,000 new users to Solana.

Solana ETF Speculation Rises

The surge in Solana activity has also fueled optimism regarding the possibility of a Solana-based ETF. Polymarket traders have increased the likelihood of a Solana ETF being launched by July 31, raising the odds from 43% to 61%. This shift reflects growing market confidence in Solana’s future following the successful launch of Trump’s memecoin.

Continued Speculative Activity Expected

The surge in Solana’s trading volumes occurred over the weekend, a period typically characterized by lower institutional activity. This means speculative trading could persist throughout the week, potentially driving further momentum for Solana and continuing the trend of increased interest.

Solana’s Opportunity to Prove Its Network Strength

The memecoin’s release has also brought a surge of new users to Solana, providing the network with an important opportunity to demonstrate its stability. Solana has faced multiple outages in the past, and this influx of users will put the network to the test. If Solana can handle the increased demand without major disruptions, it could see sustained growth and attract more capital and developers.

Implications for U.S. Crypto Policy

Beyond the technical and market impacts, the launch of Trump’s memecoin signals a potential shift in U.S. government policy toward cryptocurrency. By officially endorsing a Solana-based token, Trump is offering a form of legitimacy to the crypto space, potentially influencing future regulatory decisions.

Erik Voorhees, founder of Shapeshifter, noted that the launch of the $TRUMP memecoin signals a “change in U.S. fintech policy towards more permissive innovation.” This could pave the way for a more favorable environment for blockchain technology and cryptocurrency development in the U.S., with further opportunities for innovation and investment.

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