The recently launched Trump ($TRUMP) and Melania Meme ($MELANIA) tokens have grabbed headlines, but the story behind these tokens reveals significant market dominance by crypto whales and sharp price declines.
A report from blockchain analytics firm Chainalysis on January 22 highlights the concentration of token ownership and its potential impact on the broader market.
Whales Dominate Token Holdings
According to Chainalysis, 40 crypto whales hold 94% of the combined $TRUMP and $MELANIA tokens, each owning at least $10 million worth of assets. This level of concentration leaves most other holders, predominantly retail investors, with minimal stakes.
Chainalysis revealed that four wallets received the bulk of the minted 1 billion $TRUMP tokens, with some allocated for liquidity provision on exchanges.
While most wallets hold less than $100 worth of either token, suggesting retail activity, whales holding upwards of $100 million are shaping market trends.
Further analysis shows that many token holders are new to cryptocurrency, with 50% of buyers creating wallets the same day they purchased $TRUMP or $MELANIA tokens.
Moreover, over 80% of holders are small investors with less than $1,000 in assets on the Solana blockchain.
Market Performance: Price Drops and Whale Cash-Outs
The $TRUMP token has faced a significant downturn in recent days. Its price dropped by over 12% in the last 24 hours, trading at $36.41, while its market cap now stands at $7.28 billion. The trading volume also plunged by 57.68%, indicating waning interest.
The situation is worse for the Melania Meme token ($MELANIA), which saw a price decline of 25.59% in the past day, trading at $2.90 with a global market cap of $494.35 million. The trading volume for $MELANIA fell by 61.31%, reflecting a broader trend of reduced activity.
Data from Nansen reveals that profitable whales have sold most of their holdings. The most lucrative $TRUMP wallet recorded a total profit of $57 million but has liquidated the majority of its tokens.
The same wallet still holds an unrealized profit of $13 million, indicating an expectation of a possible price rebound.
Declining Holder Numbers
In addition to price drops, the number of token holders for $TRUMP has been shrinking. Data from CoinCarp shows a decline from 847,335 holders on Monday to 832,200 in just a few days. This downward trend may signal diminishing retail interest or profit-taking by early investors.
The dominance of whales poses a significant challenge to the stability of $TRUMP and $MELANIA. Such heavy concentration means that large sell-offs by whales, as seen recently, can lead to sharp price declines, leaving smaller investors vulnerable.
Although U.S. President Donald Trump and his team have reportedly collected substantial paper profits from the tokens, the broader market sentiment appears to be cooling. Analysts warn that without diversification of token ownership and sustained retail interest, the future of $TRUMP and $MELANIA could face continued volatility.
As the hype around the tokens fades and trading volumes decline, questions remain about their long-term viability. For now, the story of $TRUMP and $MELANIA serves as a cautionary tale for retail investors navigating the unpredictable waters of meme coin markets.
Also Read: Trump Token Whale Faces $2.47M Loss on $9.5M $TRUMP Purchase, Sits on $11M $MELANIA Tokens