Solana’s network token, SOL, surged to a new all-time high of approximately $295 following a spike in on-chain trading activity linked to the launch of the official TRUMP memecoin. The announcement, made late Friday, Jan. 17, by President-elect Donald Trump on his official X (formerly Twitter) account, set the crypto world abuzz.
At around 9:44 PM EST, Trump tweeted about the new memecoin, prompting initial skepticism as users suspected a possible hack. However, crypto investigators quickly confirmed the launch’s authenticity, leading to an influx of funds into the TRUMP token within hours.
The combination of Trump’s widespread popularity in the crypto space and his unique political position fueled significant interest. Over the 24 hours following the token’s debut, traders transacted an impressive $27 billion in total volume.
Solana’s SOL token, which powers the blockchain hosting the TRUMP token, experienced a substantial rally in response to the surge in trading activity. SOL climbed from $219.53 on Saturday morning to reach a high of around $290 on Sunday morning.
Despite the dramatic price increase, SOL did not close above its previous all-time high on the daily chart. By Sunday afternoon, prices began to decline slightly as open interest levels on Binance showed signs of cooling off.
The rally highlights Solana’s continued relevance as a preferred blockchain for hosting high-profile crypto launches. The TRUMP memecoin, bolstered by its ties to a prominent political figure, has drawn immense attention to the ecosystem. However, the sustainability of this hype and its long-term impact on SOL’s price remain uncertain.
As market participants digest the implications of the TRUMP token’s launch, all eyes are on Solana’s network activity and the broader crypto market to gauge whether the momentum can be sustained or if a correction is on the horizon.
January 2025, Cryptoniteuae