TRUMP Memecoin Sheds $2B as Market Cap Drops from $7.07B to $5.07B, Leaving Investors Wondering if the Meme Machine Has Finally Run Out of Steam

The TRUMP memecoin, once celebrated as the financial embodiment of the MAGA movement, has experienced a dramatic decline, with its market capitalization falling from $7.07 billion to $5.07 billion.

Once hailed as the financial embodiment of the MAGA movement, the TRUMP memecoin has taken a dramatic hit, with its market capitalization shrinking from $7.07 billion to $5.07 billion.

This substantial drop saw the coin shedding $2 billion from its market cap over the past week.

Initial speculation was abuzz with excitement over Donald Trump’s return to office, but the token has since struggled to maintain its meteoric rise.

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Currently, the token is trading down 27.58% this week and 8.23% in the past 24 hours, at $25.39, leading to a loss of $500 million in a single day.

The decline has left investors speculating whether the meme machine has finally run out of steam or if this is just a classic case of “shaking out the weak before mooning.”

A tale of two Trumps

The Official Trump token was launched on January 18, 2025, promising to revolutionize the intersection of crypto and political memorabilia.

The market embraced it with enthusiasm, propelling TRUMP to $75.35 within 24 hours of its release and breaking into the top 20 cryptocurrencies by market cap. However, the momentum faltered when Trump himself admitted he “didn’t know much” about crypto.

Following this revelation, TRUMP began to deflate like a hype-filled balloon punctured by reality. By January 31, 2025, the token had plummeted to $25.39, despite announcements that some pro-Trump websites would accept it for merchandise purchases.

What you should know

Currently, TRUMP is caught in a descending parallel channel, a classic technical formation suggesting either a face-melting breakout or a soul-crushing plunge.

While the Trump-branded token remains a high-risk asset, its future depends on several factors. If adoption for merchandise payments grows and Trump pivots toward a more pro-crypto stance, TRUMP could regain some bullish momentum. However, the combination of declining hype, technical weakness, and concentrated ownership presents considerable downside risks