Donald Trump's Solana (SOL) Memecoin Boosts Network's TVL to $10B for First Time Since FTX Collapse

The "official" memecoin of incoming U.S. President Donald Trump has boosted interest in Solana (SOL), leading to a surge in both its price and trading volume

Solana (SOL) has seen a surge in interest following the launch of the "official" memecoin of incoming U.S. President Donald Trump, with both its price and trading volume showing strong gains.

According to data from CoinGecko, SOL's price surged more than 23% since the announcement of the memecoin, which is set to be issued on the Solana blockchain. The cryptocurrency’s price soared to a new all-time high during the weekend, reaching $45.

Solana's rising value also helped boost the total dollar value locked (TVL) on its smart contracts. Data from DeFiLlama shows that TVL on Solana is now at $12 billion, marking a new all-time high for the network.

When measured in SOL, the value locked on the network has been on a steady uptrend since the beginning of last year and recently topped 45 million SOL. This level of TVL on the network was last seen in August 2022, ahead of the collapse of FTX, whose co-founder Sam Bankman-Fried was a major Solana proponent.

The launch of Donald Trump's official memecoin, $TRUMP, was co-ordinated by CIC Digital LLC, a Trump-affiliated organization, the BBC reported. Together with Fight Fight Fight LLC, they own 80% of the memecoin’s supply set to be released over the next three years.

The memecoin, which has been dominating headlines in the cryptocurrency space, is currently the third-largest across all blockchains behind Shiba Inu and Dogecoin in terms of market capitalization.

The token was launched by a team including Solana ecosystem protocols Jupiter and Meteora and led to a trading frenzy on the network’s decentralized exchanges, with DeFiLlama showing that Raydium surpassed Tether in 24-hour fee generation.

Moonshot, the memecoin trading platform featured on the memecoin's website posted on social media by President-elect Donald Trump, reported a 12-hour trading volume of nearly $400 million after the memecoin launched, adding that it onboarded over 200,000 users onto the network in the process.

The network choice also helped boost the perceived odds of a spot Solana exchange-traded fund (ETF) being launched in the first half of the year, with Polymarket traders went from weighing a 43% chance such a product would be launched by July 31, to 61%.

This trading frenzy came during the weekend, when trading volumes are typically muted as many institutional investors and professional traders are less active. This could indicate that speculative activity on the network may continue during the week.

Beyond that, the memecoin's launch is bringing Solana an influx of new users and presents the network, which has suffered multiple major outages, with an opportunity to showcase its robustness. If it withstands the test, the Solana ecosystem could keep on seeing significant inflows.

The introduction of Trump's token also signals the U.S. government's change in stance toward the cryptocurrency sector and offers it increased legitimacy, as the President of the world’s largest economy has quite literally launched a Solana-based memecoin.

The memecoin's rollout signals a “change in US fintech policy towards much more permissive innovation,” crypto OG and Shapeshifter founder Erik Voorhees commented.