Former United States President Donald Trump’s entry into the memecoin market has reignited interest in cryptocurrency, pushing search interest for the term “crypto” to its highest level since 2021. According to Google Trends data, the spike coincided with the launch of Trump’s official memecoin project on 18 January, just days before his inauguration.
Trump and Melania’s Memecoins Dominate Headlines
Trump unveiled the Official Trump (TRUMP) token, followed by First Lady Melania Trump’s release of her own memecoin, Melania Meme (MELANIA). Both tokens initially performed well, generating significant buzz, but later experienced sharp declines in value.
Google Trends data showed a marked rise in search interest for terms such as “crypto,” “memecoin,” and “buy crypto” immediately after the memecoins were announced. This marked the highest interest in cryptocurrency since November 2021, a period when Bitcoin hit its all-time high of over $67,000.
Crypto Apps and Solana See Record Activity
The memecoin launch also spurred a surge in activity within the crypto ecosystem. By 22 January, crypto-related apps dominated the finance category of Apple’s App Store in the United States. Leading the charge were Crypto.com, Moonshot, and Coinbase, which secured the top three spots. Other popular platforms such as Coinbase Wallet, Robinhood, Binance.US, and DEX Screener ranked within the top 30.
The Solana blockchain, which gained attention during the memecoin frenzy, saw a record-breaking increase in activity. Data from digital asset custody service Copper.co revealed that the daily number of new Solana wallet addresses surged to nearly nine million before Trump’s inauguration.
First-Time Investors Join the Market
The memecoin buzz brought an influx of first-time crypto investors. A survey conducted by NFT Evening on 20 January indicated that 42% of Trump memecoin buyers were new to cryptocurrency. This influx highlights the widespread appeal of Trump’s branding in drawing attention to the digital asset space.
Concerns Over Risks and Losses
While the memecoin release has generated excitement, it has also raised significant concerns. Critics, including prominent crypto scam investigator Coffeezilla, argue that the memecoin launch “should be a crime,” citing its potential to mislead investors.
On 22 January, California Representative Maxine Waters cautioned lawmakers about the potential risks to national security posed by the memecoins. Additionally, the market volatility has left some investors reeling. Since its peak, the value of Trump’s memecoin has dropped by 53%, leading to substantial losses for some community members, with millions reportedly wiped out.
A Polarising Event for Crypto
The launch of Trump’s memecoins has undoubtedly reignited public interest in cryptocurrency, boosting app downloads, blockchain activity, and first-time investments. However, it has also exposed investors to significant risks, underscoring the volatility and unpredictability of the crypto market. While some hail the event as a spotlight on crypto’s growing influence, others warn of its potentially harmful consequences.
