Trump's Endorsement Boosts TRUMP Token 12%

US President Donald Trump's endorsement of his memecoin, TRUMP, on his Truth Social platform led to a significant price surge. In a March 23 post, Trump described the token as “SO COOL” and “The Greatest of them all,” marking his first public endorsement since January. This endorsement sparked renewed interest in the crypto market, with the token's price jumping from $10.93 to $12.25, an increase of around 12%, before stabilizing near $11.91. This price performance briefly placed the digital asset on the top 10 gainers list.

The excitement surrounding TRUMP extended beyond spot markets. Derivatives trading volume for TRUMP skyrocketed, highlighting the renewed speculation around the token. However, not all traders benefited from this surge. A high-profile whale, who had previously earned around $108 million from early TRUMP investments, lost $207,000 in just one hour after attempting to capitalize on the rally. This loss contrasted sharply with the whale's earlier success, where a $1.09 million investment in TRUMP tokens yielded significant profits.

Despite the initial surge, interest in memecoins has been waning. Crypto analyst Nishant Bhardwaj noted that even with Trump's endorsement, the memecoin struggled to break its 4-hour resistance, indicating a weak market. The launch of the TRUMP token in January had sparked a wave of similar launches tied to public figures and governments, many of which faced backlash for exploiting hype and lacking transparency. As a result, public interest in memecoins has declined, with investors increasingly turning to more solid crypto projects like Bitcoin.

Trump's promotion of the memecoin drew mixed reactions from the crypto community. While some saw it as a potential catalyst for renewed interest, others pointed out the declining interest in the sector. The TRUMP token's price surge and subsequent stabilization reflect the volatile nature of memecoins, which are often driven by hype and speculation rather than fundamental value. The token's 70% decline from its all-time high further underscores the risks associated with investing in memecoins.