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Rumors of Solana-based DJT meme coin backed by Donald Trump trigger PoliFi token capitulation
As the US presidential election approaches, leading candidates Donald Trump and Joe Biden have turned their attention to the cryptocurrency sector, hoping to gain support among tech-savvy voters. In a surprising development, a Solana-based meme coin called TrumpCoin (DJT) has skyrocketed more than 368% in the past 24 hours, reaching around $0.025 during the early session on Tuesday in New York.
Here’s what you should know.
The birth of TrumpCoin
The buzz around TrumpCoin began with Pirate Wires, a bold media outlet, hinting at the former president’s endorsement through his official X account. Despite the excitement, Ryan Selkis, CEO and founder of the Messari cryptocurrency, said warned investors to be cautious, suggesting the possibility that the Federal Reserve was behind the bill.
DJT and market frenzy
The surge in value of the DJT meme coin was accompanied by a notable increase in trading volume. On-chain data from Birdeye revealed that DJT’s fully diluted market capitalization stood at approximately $248 million, while its average daily trading volume rose to approximately $372 million. Additionally, DJT boasts approximately $86 million in locked liquidity on Solana, with over 10,000 holders.
Other meme coins take a hit
While DJT has attracted a lot of attention, other meme coins linked to Trump’s political influence have seen sharp declines. The Ethereum-based MAGA coin (TRUMP) has fallen more than 36% in the past 24 hours, trading around $6.87. Similarly, another Trump-themed coin, MAGA Again (MAGAA), fell more than 47%, trading at around $0.013 on Tuesday.
The growing involvement of US political parties in cryptocurrency discussions highlights a growing adoption of web3 and digital assets. Furthermore, the recent approval of Bitcoin and Ethereum spot ETFs in the United States is expected to soon attract more institutional investors to the cryptocurrency market.
Read also: Why is the cryptocurrency market down today?