Donald Trump’s Memecoin to Face $320 Million Token Unlock as Price Dips

• TRUMP token has lost 83% of its value, causing $2 billion in community losses.
• The $320 million token unlock could flood the market, pushing prices lower.
• Investor interest in TRUMP has dropped, with fewer holders and reduced liquidity.

The TRUMP memecoin, launched in January, is facing a significant challenge. A major token unlock is scheduled for next week, with the team behind the project set to receive $320 million worth of tokens. 

This unlock could heighten the already unstable situation for the memecoin, which has seen a dramatic 83% decline in value since its launch. The token’s plummeting price and the impending increase in token supply are raising concerns about the future trajectory of TRUMP and its investors.

TRUMP Token Sees Significant Losses in Value

The TRUMP token launched on January 18 faced a significant price decline in its market value and now rests at $8.03. The value of the TRUMP token depreciated by 83% from its initial valuation marking a substantial decline that does not please those who invested at superior market prices. The initial investors of TRUMP token face severe capital erosion according to reports which show the total community losses reached approximately $2 billion.

The token’s poor performance reflects broader market conditions, with the memecoin sector as a whole seeing a dramatic decline. The market capitalization for memecoins has shrunk from $119 billion in December to just $45 billion today, according to CoinMarketCap. TRUMP’s significant price drop is a clear example of the volatility and uncertainty that characterizes the memecoin market.

$320 Million Token Unlock: Can This Lead to an Extended Dip?

Next week’s token unlock could add more downward pressure on the price of TRUMP . The unlock will release 20% of the circulating supply, valued at $320 million, into the market. This additional supply could severely skew the liquidity and supply/demand balance, making it difficult for the price to recover. If the unlocked tokens are sold immediately, the market could face overwhelming sell pressure, potentially triggering a sharp decline in price.

Unlocks like this are typically seen as bearish events, especially in markets with limited demand. Historically, such unlocks flood the market with tokens, pushing prices lower due to the imbalance created between supply and demand. The market is already preparing for this release, with the TRUMP token seeing decreased trading volume and a dwindling number of holders.

Declining Investor Interest and Potential Market Impact

According to Dune Analytics statistics , the TRUMP holder base started at 817,000 owners but has reduced to 637,000 present holders. The wallet activity shows a major decrease in holders with more than $1,000 worth of TRUMP tokens because their numbers went from 143,000 to only 12,000. Active holders have demonstrated decreasing numbers, which signals declining investor confidence, thereby intensifying worries about the token’s future worth.

The token’s market depth is also concerning, with just $980K to $2 million of liquidity at the 2% market depth level. Given this shallow liquidity, the release of $320 million worth of tokens could destabilize the market and send the price into a steep decline.
The TRUMP memecoin is in a fragile state, with a major token unlock looming and the price continuing to plummet. Investors are facing significant losses, and the upcoming release of $320 million in tokens could make matters worse. As the memecoin market continues to cool, the TRUMP token’s future remains uncertain, with further declines possible if market conditions don’t improve.