Dogecoin, the original meme coin, has long held a significant position in the cryptocurrency market. However, it faced setbacks with the launch of the TRUMP token on the Solana blockchain, leading to declines in DOGE prices.
Dogecoin’s Struggles Amid New Competition
Dogecoin (DOGE) rose to a one-month high of $0.43 but dropped to $0.397 after the TRUMP token launch, marking an 8% decrease. Traders began selling their DOGE holdings to invest in the new token. Despite this dip, DOGE remains up 18% from the beginning of the week.
Trump’s Memecoin Disrupts the Market
The launch of the official TRUMP meme coin on Solana resulted in over $6.8 billion in trading volume within 24 hours. Its price soared to nearly $24 before stabilizing around $21, giving it a market cap of over $4 billion. Notable traits include the speed and low fees of the Solana blockchain and personal endorsement by Donald Trump.
Solana’s Ecosystem Flourishes
While Dogecoin dipped, Solana's ecosystem experienced notable growth, with its token climbing 10% to nearly $244. Key beneficiaries include Jupiter and Raydium, which rose 20% and 19% respectively. Other competitors like Shiba Inu and Pepe also saw price drops of 6% and 5%.
The launch of the TRUMP meme coin created significant shifts in the market, boosting Solana's position while posing challenges for Dogecoin. Nonetheless, DOGE's long-term outlook remains promising due to its strong community and increasing popularity of meme coins.
