Rumors of Donald Trump-backed Solana-based Meme Coin DJT Triggers Capitulation of PoliFi Tokens

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Ahead of the United States presidential election later this year, top contenders Donald Trump and Joe Biden have endorsed the cryptocurrency industry to consolidate their voters. In the latest crypto-political projects, a Solana-based meme coin TrumpCoin (DJT) has pumped more than 368 percent in the past 24 hours to trade around $0.025 on Tuesday during the early New York session. 

The rumors of a Trump-backed meme coin originated from Pirate Wires, a maverick media outlet, through its X official account. However, Ryan Selkis, the CEO and founder of Messari crypto, urged crypto investors to approach the DJT meme coin with care as the Fed could be running the account.

DJT and Market Outlook 

The rise of the DJT meme coin has seen its daily average traded volume outshine its total market capitalization as of this report. According to on-chain data from Birdeye, the DJT meme coin had a fully diluted market cap of about $248 million and a daily average traded volume of around $372 million.

Notably, DJT has locked liquidity in Solana of about $86 million, with more than 10k holders. 

On the Flipside

Following the notable attention of DJT on Tuesday, other meme coin projects that had thrived under Trump’s political influence dropped significantly in the past 24 hours. For instance, Ethereum-based MAGA (TRUMP) dropped more than 36 percent in the last 24 hours to trade around $6.87 at the time of this writing. 

Another Trump-focused meme coin dubbed MAGA Again (MAGAA) dropped over 47 percent to trade around $0.013 on Tuesday.

Bigger Picture

The notable attention to crypto discussion by the US political parties indicates heightened web3 and digital assets adoption. Moreover, the recent approval of spot Bitcoin and Ethereum ETFs in the United States will attract more institutional investors in the crypto space soon.