In the fast-evolving world of cryptocurrency, few events have sparked as much attention as the recent launch of TRUMP, a meme coin tied to former U.S. President Donald Trump. While the political symbolism and market frenzy around TRUMP captured headlines, one blockchain quietly emerged as the true beneficiary: Solana (SOL). On January 18, SOL surged past $270, marking a new all-time high with a 23.02% gain in just 24 hours. At press time, SOL trades at $255.26, solidifying its position as the fifth-largest cryptocurrency by market cap—now exceeding $124.6 billion.
Meanwhile, Ethereum (ETH) has shown signs of weakness. Despite briefly rebounding to $3,525, it failed to sustain momentum and dipped to $3,225 before stabilizing around $3,348.80. The contrast is even starker when viewed through the SOL/ETH exchange rate, which briefly spiked above 0.08178—another record high—before settling at 0.07634.
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Why Solana Is Winning the Meme Coin Revolution
The TRUMP meme coin, launched on Solana and promoted via Trump’s Truth Social platform, ignited unprecedented trading volume and user engagement. Within 12 hours of launch, Moonshot—a popular Solana-based token discovery platform—reported over $400 million in trading volume and attracted more than 400,000 new users. This surge underscores Solana’s growing reputation for speed, low fees, and scalability—key advantages in handling viral token launches.
According to DefiLlama, Solana’s decentralized exchanges (DEXs) recorded over $16.4 billion in 24-hour trading volume, surpassing the combined volume of all other blockchains and capturing 57.7% of total DEX activity. This dominance isn’t accidental—it reflects a powerful network effect driven by developer adoption and user experience.
Arthur Hayes, co-founder of BitMEX, noted that TRUMP’s launch signals the dawn of political meme coins, where public figures can tokenize their influence in real time. While such tokens may lack traditional economic models, their cultural impact is undeniable—and Solana is positioning itself as the go-to platform for these disruptive launches.
Infrastructure Under Pressure: Solana’s Scalability Test
The explosive popularity of TRUMP put immense strain on both exchange infrastructure and blockchain networks. Binance temporarily suspended SOL withdrawals, while Solana and BNB Chain withdrawal channels were also paused due to congestion. South Korean exchange Bithumb reported delays in processing Solana withdrawals due to a spike in demand.
Wintermute, a leading market maker, confirmed that TRUMP is now tradable on its OTC desk. Early on-chain analysis suggests Wintermute was likely involved from the start, possibly providing initial liquidity—a sign of institutional confidence in Solana’s ability to support high-profile token launches.
This level of coordination between projects, market makers, and platforms highlights Solana’s maturing ecosystem. Unlike earlier phases of crypto growth, where technical failures derailed hype cycles, Solana demonstrated resilience under pressure—processing millions of transactions without catastrophic outages.
Ethereum's Leadership Crisis Amid Market Shifts
While Solana gains momentum, Ethereum faces internal challenges. Over the past year, the Ethereum Foundation (EF) sold approximately 4,466 ETH (~$12.6 million) across 32 transactions, with 15 sales occurring near price peaks. These moves have raised concerns among long-term holders about EF’s market stewardship.
Marc Zeller, founder of Aave Chan Initiative (ACI), called for drastic reforms: firing 80% of non-developer staff, cutting subsidies by 95%, halting ETH sales, and instead using liquid staking tokens (LSTs) via protocols like Aave to generate yield. His critique reflects broader unease about Ethereum’s governance agility and responsiveness.
Vitalik Buterin recently acknowledged ongoing leadership restructuring within EF—a process underway for about a year. Key goals include:
- Strengthening technical expertise in leadership
- Enhancing communication with developers and users
- Accelerating execution speed
- Supporting application builders
- Upholding core values like privacy, openness, and censorship resistance
But structural change takes time—and in a fast-moving market, perception matters. The fact that TRUMP chose Solana over Ethereum—despite Trump’s prior ties to Ethereum-based World Liberty Finance—signals shifting sentiment. It’s not just about technology; it’s about ecosystem momentum.
Who Profited From TRUMP’s Meteoric Rise?
TRUMP’s launch was nothing short of explosive. Within 30 minutes, its market cap hit $700 million. After Trump shared the news on X (formerly Twitter), it rocketed past $10 billion and then $20 billion. By late evening on January 18, Eric Trump affirmed the coin’s legitimacy, citing “the end of crypto terror” under David Sacks’ influence—pushing TRUMP’s price above $34 and market cap beyond $30 billion.
Arkham Intelligence estimates that if entities like CIC Digital LLC and Fight Fight Fight LLC are indeed linked to Trump, his net worth could have increased by **$22 billion overnight**—far surpassing Forbes’ $5.6 billion estimate from November 2024.
However, the team behind TRUMP has been steadily reducing holdings:
- $20 million worth sent to Bybit for market-making
- $92 million transferred to centralized exchanges
- ~$500 million remains in liquidity pools; only $20 million withdrawn as USDC
Notably, early whales reaped massive gains. One “smart money” address (6QSc2) acquired funds four hours before launch, bought $1 million worth of TRUMP in the first minute, and now holds unrealized profits nearing **$116 million**. They’ve already sold $20 million and distributed remaining tokens across 10 wallets for staggered exits.
FAQ: Your Questions Answered
Q: Why did TRUMP choose Solana instead of Ethereum?
A: Solana offers faster transaction speeds and lower fees—critical for handling sudden spikes in retail participation during meme coin launches.
Q: Is Solana’s price surge sustainable?
A: Short-term momentum is strong, but long-term sustainability depends on continued institutional adoption, ecosystem growth, and sustained developer activity.
Q: Did the Ethereum Foundation sell ETH at bad times?
A: Some sales coincided with price highs, fueling criticism. However, EF maintains these were part of routine treasury management—not market timing.
Q: Can political meme coins become mainstream?
A: TRUMP shows they can generate massive attention. Whether they endure depends on regulatory clarity and community utility beyond speculation.
Q: Was Trump’s account hacked during the TRUMP launch?
A: Some attendees at his crypto ball expressed skepticism, but no evidence of a hack has emerged. His son Eric later validated the launch.
Q: How does SOL/ETH ratio impact investors?
A: A rising ratio indicates growing confidence in Solana relative to Ethereum—a potential signal for portfolio rebalancing.
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The Road Ahead: Can Solana Sustain Its Lead?
While TRUMP brought short-term spotlight to Solana, lasting success requires more than viral moments. Three factors will determine whether Solana can maintain its upward trajectory:
- Institutional Adoption: Gaining trust from large investors and enterprises.
- Network Resilience: Proving consistent uptime during high-load events.
- Developer Innovation: Attracting builders to create meaningful applications beyond speculative tokens.
Solana’s current strengths—high throughput, low cost, and vibrant community—are compelling. But competition remains fierce. Ethereum’s upcoming upgrades could reclaim developer mindshare, while emerging Layer 1s eye niche markets.
Still, one message is clear: Solana has proven it can handle the spotlight—and thrive under pressure.
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