Trump-themed memes followed the broader decline of the cryptocurrency sector, tanking by double digits.
Official Trump has slipped below $12.50, but some analysts believe a resurgence could be on the horizon.
The Major Collapse
The brief pump in the cryptocurrency sector on March 2 and the early hours of March 3 was abruptly suspended by another huge correction.
The massive volatility was likely caused by Donald Trump’s actions. First, the American president confirmed that his administration will move forward with the plans to establish a strategic crypto reserve that will include leading assets like BTC, ETH, XRP, ADA, and SOL. The involved cryptocurrencies and the entire market reacted more than positively to the news.
On March 4, though, some of the previously announced trade tariffs came into effect. From today, the US will slam Canada and Mexico by 25% on most imported stocks, while Canadian energy will be the subject of a 10% duty.
The escalating trade war had a negative effect on the financial markets and the cryptocurrency industry. Bitcoin (BTC) tumbled below $83,000, while Ethereum (ETH) sank to a 16-month low.
The meme coin sector was not spared and is also covered in red. Trump-themed memes, such as Official Trump (TRUMP), MAGA (TRUMP), MAGA: Fight for Trump (TRUMPCOIN), and others are among the biggest losers, nosediving by double digits in the past 24 hours.
It is worth mentioning that the aforementioned tokens were at the forefront of gains over the past several months. Official Trump peaked above $72 hours after its launch in January this year, whereas its market capitalization skyrocketed to a whopping $14.5 billion. Thus, it briefly became the second-biggest meme coin, trailing only behind Dogecoin (DOGE).
Currently, the asset trades at less than $12.50, representing an 82% collapse from the all-time high and an 18% decline on a 24-hour basis.
TRUMP Price, Source: CoinGecko
MAGA (TRUMP) was among the market’s top performers last summer. In June 2024, its price exploded beyond $17, while the market cap neared $800 million. Over the past months, it has been on an evident downtrend, and as of the moment of writing these lines, it hovers at a mere $0.32 (a 98% crash from the peak level).
The huge pullback of these assets showcases the volatile nature of the meme coin sector, which can cause crucial losses to inexperienced investors. Those about to enter the ecosystem should do proper research beforehand and invest only as much as they are ready to lose.
Meanwhile, these particular tokens related to Donald Trump are expected to witness additional volatility in the near future since they often react to announcements or actions taken by America’s leader.
Is TRUMP’s Comeback in the Cards?
Despite TRUMP’s recent negative performance, some industry participants believe a comeback is not out of the question. The X user CryptoELITES set $25 and $45 as short-term targets, envisioning an eventual rally to as high as $75.
Others, on the other hand, have previously criticized the asset’s existence. Balaji Srinivasan (the former CTO of Coinbase) claimed that such tokens only damage the reputation of the crypto sector instead of legitimizing it.
The American billionaire Mark Cuban shared a similar thesis, opining that the introduction of Trump’s meme coin is nothing but harmful to the industry.
“This is the biggest bunch of self-serving Bullsh*t I have ever heard. In your world, there is no ownership. Just speculation,” he said.
The total market capitalization of the crypto sector is down by over 10% in the past 24 hours. Crypto Bits, Crypto News, Donald Trump, Meme coins, Official Trump (TRUMP)
This articles is written by : Nermeen Nabil Khear Abdelmalak
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