Donald Trump launched his memecoin, TRUMP, based on Solana, and the market went after it.
The popularity of a memecoin on Solana increases the demand for SOL to pay network fees.
Following the launch of President-elect Donald Trump’s memecoin on the Solana network, the price of the SOL token skyrocketed on January 18, reaching a price of around $243 at the time of writing.
This increase represented a 11% increase in its market value, since SOL, token native of the network, started the day at approximately $218.
These data can be seen in the following graph extracted from the financial analysis platform TradingView:
The argument behind this rise of SOL was the launch of the memecoin Official Trump (TRUMP) of the new electro president of the USA, Donald Trump. This token was broadcast in Solanaa network that has become the favorite site for the issuance of memecoins. Therefore, the enormous number of users who began to operate with TRUMP had to interact with this network.
As CriptoNoticias reported it, TRUMP’s price grew more than 200% and became the fourth memecoin highest market capitalization in 24 hours.
When a memecoin becomes popular among users and investors, there is generally a significant increase in transactions within the network where it is issued, in this case Solana. Since every transaction on this network requires payment of fees in SOL, this implies that users must own SOL, which increases the demand for token.
Indeed, in the last 24 hours there was a significant increase in the value of commissions in Solana, exceeding by one million dollars the value of commissions paid in Ethereum, which also translates into greater profits for the validators of this network .
Additionally, if a memecoin If Solana begins to gain value quickly, it can cause a FOMO effect (Fear Of Missing Out) among investors, leading them to buy not only the memecoin TRUMP but also SOL, speculating on future opportunities on the network. This is especially because Solana has become the preferred network for the issuance of memecoins, which has been one of the most lucrative trends in this bullish cycle.
