Incoming TRUMP unlock could stretch its decline

Team members of the TRUMP meme coin will receive $321.6 million of unlocked tokens next week, according to data from Tokenomist.

President Trump's meme coin, officially known as Trump (TRUMP), will unlock over $320 million worth of its tokens to team members next week, despite the dominant risk-off sentiment across the crypto market.

The TRUMP team members will receive $321.6 million of unlocked tokens on Monday, according to Tokenomist data.

Token unlocks can lead to price declines if the new supply is sold in the open market. The negative sentiment surrounding unlocks could quickly spark selling pressure as investors may price in the new supply ahead of time.

The unlock could put further pressure on TRUMP, which has seen significant drawdowns in the past months following increased risk-off sentiment dominating the crypto market.

President Donald Trump announced the launch of TRUMP in a Truth Social post two days before his inauguration on January 18. Since peaking at an all-time high of $73.43 on January 19, TRUMP has declined by 89%, trading around $8.05 at press time, according to CoinGecko data.

The upcoming unlock, representing 40 million TRUMP, will increase the meme coin's new circulating supply to about 240 million TRUMP - still far below its total supply of 1 billion TRUMP. Hence, the token risks further downside pressure, especially if it sees more unlocks under current market conditions.

The decline in TRUMP reflects that of the broader meme coin sector, which has plunged from a market cap of $127.26 billion in December to $45.64 billion on Friday, according to CoinMarketCap data.

While the TRUMP unlock accounts for over 60% of next week's $519 million insider unlock, Fast Token (FTN) and Arbitrum (ARB) team members will also receive new unlocked supply worth $80.6 million and $27.2 million, respectively.