$TRUMP is Down 75% From ATH. Can the Memecoin Bounce Back?

United States President Donald Trump has faced widespread criticism after launching his memecoin, Official Trump (TRUMP), just three days before his inauguration. Many in the crypto community argued that associating himself with memecoins could undermine serious efforts toward crypto reforms.

Notably, since President Trump took office, TRUMP’s value has declined sharply. This has led market participants to speculate on whether the memecoin could recover.

TRUMP Token Sheds 75% of Its Value

On Friday afternoon, TRUMP declined nearly 5%, reaching $17.71 per token. Data from CoinGecko shows the token has lost over 75% of its value since its peak.

The downturn is part of a broader decline from its all-time high. On January 19, just before Trump’s second term began, TRUMP hit $75.35 per token, with a market cap of $14.5 billion. Despite holding a $3.3 billion market cap, the token has fallen significantly from those levels.

Profits From Fees and Early Adoptions

Although the token has faced a notable drop, certain entities have profited from trading fees. According to Reuters, TRUMP’s trading fees have generated between $86 million and $100 million. One entity profiting from these fees is CIC Digital, an affiliate of the Trump Organization, though the president’s financial benefit remains unclear.

On the other hand, early adopters and whales reportedly made substantial profits from TRUMP’s launch. A CoinTab report highlighted one trader who recorded unrealized profits exceeding $20 million within an hour.

Notably, the trend extended beyond individual cases. Chainalysis reported that at least 50 of the largest holders of the coin have each recorded profits exceeding $10 million on TRUMP.

Meanwhile, the tokens can be used to purchase Trump-branded products, including sneakers, watches, and fragrances.

Broader Crypto Market Trends

Selling pressure on TRUMP intensified after Trump was sworn in. By January 21, the token had lost nearly 50% of its value, falling to just over $40.

The decline has not been limited to TRUMP. MELANIA, a separate memecoin launched by First Lady Melania Trump, has also suffered heavy losses. On January 20, MELANIA traded at $13.73 per token, but by Friday, it had plummeted 88% to $1.53.

The downturn reflects a broader trend in the crypto market. Ethereum (ETH) has surrendered all its gains since the start of the year, while Bitcoin (BTC) remains slightly positive. ETH, which began 2025 at $3,330, now trades at $2,750, marking a 17% decline.

The sell-off comes as Trump’s tariff policies fuel concerns about an escalating trade war. Uncertainty surrounding higher import costs has driven some investors to reduce exposure to digital assets, especially riskier ones like memecoins. Liquidating such assets also provides cash, which could be useful amid rising costs.

On Tuesday, the U.S. government suspended tariffs on Mexican and Chinese goods for 30 days. However, a 10% tariff on Chinese imports took effect, prompting China to retaliate with new levies on coal, liquefied natural gas, U.S. crude oil, agricultural machinery, and large-engine cars. 

Additionally, Chinese regulators launched an antitrust investigation into Google and imposed export controls on high-tech components. These economic shifts have further contributed to volatility in financial markets, including crypto.

With the current volatile crypto market, it remains to be seen whether the memecoin will bounce back or fade away. However, with the unpredictable nature of the industry, it could make a dramatic comeback.

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