Jan 23, 2025
Commentaries

Weekly Market Review 01/23

Key Takeaways

  • President Donald Trump’s team launches coin on the Solana network
  • Crypto liquidity swiftly shifted toward Solana and TRUMP on coin launch
  • Solana DEXs saw a significant rise in volume thanks to TRUMP activity

Digital Asset Commentary

On January 18th, President Donald Trump made another direct entry into the digital asset market with the launch of TRUMP coin on the Solana network. At the same time, digital asset businesses gathered in Washington, D.C., for a crypto gala celebrating Trump's inauguration. While there were no digital asset executive orders on the first day, it is clear that this administration's approach to digital assets and related businesses has shifted in contrast to the stance taken by the Biden administration.

The launch of TRUMP coin on Saturday night had a significant impact on liquidity within the cryptocurrency ecosystem. Immediately after its release, non-Solana-related tokens saw a 5-10% drop, indicating that many investors sold off other assets to buy the new coin. This sharp liquidity shift highlights the vulnerability of the altcoin market, which relies heavily on capital influxes from stablecoins to maintain liquidity.

At its peak, TRUMP coin reached a fully diluted market value of over $70 billion. According to Dune Analytics, Solana-based decentralized exchanges saw a dramatic surge in trading volume, jumping from around $1-2 billion per quarter to $30.7 billion in just three days due to Trump-related tokens. Additionally, Solana itself reached a new all-time high of nearly $300. If this weekend's events are any indication, 2025 could see a significant wave of new product and coin launches.

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