Degen Digest: January 22, 2025
Discover how $TRUMP memecoin shook the crypto market, boosting Solana’s ecosystem and DEX trading. Dive into WLFI’s $1.5B FDV, Ethereum’s struggles, and why DEXs are the future of crypto trading.
Jan 22, 2025
Welcome to this week’s Degen Digest, your go-to source for the latest crypto market analysis. This week, we dive into the explosive rise of $TRUMP, a memecoin that shook the Solana ecosystem, and explore the controversial DeFi project, World Liberty Financial (WLFI), rumored to have ties to the Trump family. We also examine the broader market dynamics, including Solana's rally, Ethereum's struggles, and the rising opportunities within decentralized exchanges (DEXs).
TL;DR
- $TRUMP Memecoin: Launched on Solana, $TRUMP skyrocketed to $79.7 with an FDV briefly surpassing Dogecoin, driving Solana’s ecosystem into the spotlight.
- Solana's Comeback: $TRUMP’s success boosted Solana ($SOL), with platforms like Moonshot reaching the #1 spot on the U.S. App Store.
- WLFI DeFi Project: WLFI, tied to Trump’s brand, saw its FDV hit $1.5B after $TRUMP's rise, but skepticism remains over its controversial revenue-sharing agreements.
- Ethereum Struggles: Ethereum ($ETH) continued to underperform as liquidity flowed into Solana and memecoins.
- DEX Dominance: Decentralized exchanges (DEXs) are offering more opportunities for high-reward trades, especially in early-stage tokens like $TRUMP.
1. $TRUMP: The Wild Rise of a Presidential Memecoin
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On January 18, a token claiming to be the official Donald Trump memecoin was launched on Solana’s Meteora platform. Initially dismissed as a scam due to its low-quality website and the fact that 80% of the token supply was held by a single address, traders were skeptical. However, simultaneous posts on Trump’s official X (formerly Twitter) account and his Truth Social platform, endorsing the token, sparked a frenzy among the crypto community.
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Although many speculated these accounts had been hacked, some traders saw this as a once-in-a-lifetime opportunity. Their instincts proved correct when Trump’s accounts continued posting as usual without addressing the alleged hack. This confirmation led to an unprecedented surge in $TRUMP’s price:
- Bybit rushed to list $TRUMP on both futures and spot markets, followed shortly by Binance.
- The token skyrocketed to $45 before Binance’s listing, briefly dipped, and then hit a staggering all-time high of $79.7.
- Despite the fact that 80% of the token supply was locked for three years, $TRUMP achieved a fully diluted valuation (FDV) that temporarily surpassed Dogecoin.
The token launch also had a ripple effect on the Solana ecosystem. Solana’s native token ($SOL) rallied alongside the rise of $TRUMP, as the memecoin brought liquidity and renewed attention to the network. Similarly, Jupiter ($JUP) and Moonshot, a decentralized app on Solana, saw increased activity. Moonshot even became the #1 app on the U.S. App Store, signaling a significant influx of retail investors into the DEX ecosystem.
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Despite its success, $TRUMP also raised concerns about sustainability. Copycat tokens like $MELANIA and $BARRON flooded the market, with $BARRON reaching a $400M market cap. Speculation is growing about whether other Trump family members will launch tokens, though legal and constitutional challenges may prevent this.
For more insights into DEX trading opportunities and how to find the next $TRUMP, check out our guide on What Are DEX Trading Tools? A Beginner’s Guide to DEX Trading.
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2. World Liberty Financial (WLFI): A DeFi Project with Trump Ties?
As Solana and Bitcoin rallied, Ethereum ($ETH) continued to lag, hitting new lows in its ETH/BTC ratio. Amid this slump, World Liberty Financial (WLFI)—a DeFi project allegedly tied to the Trump family—emerged as a surprising player in the market.
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WLFI’s Public Sale Drama
Before $TRUMP’s launch, WLFI struggled to sell 20% of its token supply in a public sale. However, after witnessing $TRUMP’s meteoric rise, traders FOMO’ed into WLFI, driving the following developments:
- WLFI’s fully diluted valuation (FDV) of $1.5B suddenly appeared undervalued, sparking a rush of buyers.
- The first public sale sold out completely, leading WLFI to reopen the sale at three times the original price. However, the higher price point slowed sales, as skepticism about the project grew.
Controversial Financial Ties
WLFI heavily leverages Trump’s name, but leaked documents reveal troubling financial arrangements:
- 75% of WLFI’s protocol revenue is allocated to DT Marks DEFI LLC, a Trump-owned entity.
- 25% goes to WLFI itself, but even half of that is controlled by WC Digital Fi LLC, owned by a Trump associate.
- Trump’s company received 22.5 billion WLFI tokens (out of a total supply of 100 billion).
- The Trumps are granted immunity from liability for any issues with the WLFI platform.
While WLFI’s marketing heavily leverages Trump’s name, it’s clear that the relationship is primarily a business arrangement. Still, the project’s success highlights how Trump’s involvement in crypto—whether direct or indirect—signals a potential regulatory softening toward DeFi in the U.S.
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Key Takeaway for Traders
The WLFI team has been actively buying Ethereum-based assets like $ETH, $LINK, $AAVE, and $UNI to maintain Ethereum’s market presence. For traders, this signals an opportunity to buy the dip on Ethereum-based assets, particularly during market corrections. These assets are supported by increasing institutional interest, providing more stability compared to lower-cap memecoins.
3. Market Trends: More Opportunities on DEXs
One of the biggest takeaways this week is the growing dominance of DEXs over centralized exchanges (CEXs). Tokens like $TRUMP highlight how low-cap plays on DEXs can deliver massive returns, though they require significant research—and a bit of luck.
Why DEXs Are Thriving
- Accessibility: Retail investors are increasingly drawn to DEXs due to their trustless nature and the ability to participate in early-stage projects.
- Innovation: Solana’s Meteora and platforms like Moonshot are introducing innovative liquidity solutions that rival traditional CEX offerings.
- Market Sentiment: High-profile token launches and memecoin mania are driving liquidity flows into DEXs, leaving CEXs struggling to compete.
However, the risks associated with DEX trading—such as rug pulls and scams—should not be underestimated. As always, conduct thorough research before diving into any project.
For a detailed guide on choosing the right DEX for Ethereum and Solana trading, read our article on How to Choose the Best DEX for Your First Crypto Trade.
Conclusion: Key Takeaways and Actionable Insights
- DEXs Offer More Opportunities: The rise of tokens like $TRUMP demonstrates the potential for explosive gains on decentralized platforms. For those willing to put in the effort, DEXs remain fertile ground for finding the next big opportunity.
- Watch WLFI’s Moves: While WLFI’s legitimacy is questionable, its focus on Ethereum-based assets suggests a growing narrative around institutional Ethereum accumulation. Keep an eye on their portfolio additions for potential buy-the-dip opportunities.
- Solana’s Comeback: Solana’s ecosystem is gaining momentum thanks to $TRUMP and other high-profile launches. Projects on Solana could see increased adoption, making it a key ecosystem to watch in the coming weeks.
For more insights into DEX trading trends, on-chain analytics, and the latest crypto market sentiment, explore our in-depth guides on the SnapX Blog. Stay ahead of the curve by subscribing to our weekly Degen Digest for more actionable market analysis.
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