TRUMP Meme Coin Inspires a Trading Frenzy, But Most New Traders Lose Money

The TRUMP meme coin, inspired by U.S. President Donald Trump, has been one of the most talked-about assets in the crypto market since its debut over the weekend.

The TRUMP meme coin, inspired by U.S. President Donald Trump, has attracted hundreds of thousands of new traders since its debut last weekend. Now, on-chain data reveals some interesting insights into the coin’s trading behavior.

The key takeaways:

TRUMP sparked a massive trading frenzy, attracting 929,543 new on-chain traders in the first four days. At the peak of this frenzy, 42,208 new traders joined the market per hour on January 18.

However, after this surge, the trading activity quickly fizzled out, with the number of new traders falling to just 1,383 per hour by January 22.

Despite the volatility and shifts in trading volume, several addresses managed to cash in on the TRUMP surge. On-chain data shows the profit and loss (PNL) distribution for TRUMP holders largely follows a normal distribution, with a few standout earners.

These fortunate few capitalized on the explosive price movement during the meme coin’s brief, intense rally. However, many traders also faced losses as the price corrected.

TRUMP's price soared from $0.1824 on January 18 to reach an all-time high of approximately $80 the same day. This represents an extraordinary 43,759% surge in one day. Meanwhile, the price also tanked to around $30 on January 20 amid massive profit-taking.

This sell-off saw addresses within the so-called “conspiracy group” — those who only sold and never bought — dump over $310 million worth of the token.

TRUMP Meme Coin Inspires a Trading Frenzy

The TRUMP meme coin sparked a massive influx of new traders into the crypto market. According to on-chain data, the token attracted a staggering 929,543 new on-chain traders in the first four days following its launch.

At the peak of this frenzy, an average of 42,208 new traders joined the market every hour on January 18. This surge in activity was driven by the coin’s wild price fluctuations and the attention it garnered on social media and trading forums.

However, after this initial surge, the trading activity quickly fizzled out. By January 22, the number of new traders joining the market had fallen to just 1,383 per hour.

This sharp decline in activity suggests that the hype surrounding TRUMP may have subsided, or that the astronomical prices and volatility scared off potential traders.

With the dust settling and hot money exiting the market, the number of active TRUMP holders has slowly decreased from a peak of 852,000 to around 770,000.

Some Laugh, Others Cry: Analyzing TRUMP's PNL Distribution

The enthusiasm for TRUMP was not without its casualties. The majority of holders found themselves facing losses as the coin’s price fluctuated wildly.

To put this in perspective, the distribution shows that the overwhelming majority of traders fell into the losing category, with many facing small to mid-range losses.

A closer examination reveals that one address in particular managed to cash in on TRUMP in a big way, accumulating a staggering profit of 2.2 billion TRUMP. At current prices, this translates to an astronomical gain of approximately $94 million.

Meanwhile, another address managed to net a tidy profit of 1.1 billion TRUMP, or roughly $47 million. These two fortunate traders had an uncanny ability to buy low and sell high, capitalizing on the explosive price movements during the meme coin’s brief, intense rally.

TRUMP Whales Influence Price Movements, Capitalize on Dip

On-chain data further reveals that TRUMP whales played a crucial role in influencing the token’s price movements. On January 18, whales began building positions in the token, only to reduce their holdings rapidly by January 20.

For context, this was the inauguration day of Trump as the 47th U.S. president. The TRUMP meme coin tanked by over 50% on this day to trade at $35.

Interestingly, these whales bought back in at lower levels as the price dropped. They capitalized on the dip before trimming their positions during the subsequent rebound. At press time, TRUMP has settled around $43, up by 23%.