Trump-themed cryptocurrencies have suffered steep losses alongside the broader digital asset market, with many tokens dropping by double digits.
Official Trump (TRUMP) has fallen below $12.50, representing an 82% decline from its all-time high. The token briefly became the second-largest meme coin after its January launch, when its market capitalization reached $14.5 billion.
The cryptocurrency sector initially saw gains on March 2 and early March 3 before experiencing a sharp correction. Market volatility intensified after President Donald Trump confirmed plans to establish a strategic U.S. crypto reserve that would include Bitcoin, Ethereum, XRP, Cardano and Solana. These assets initially responded positively to the announcement.
The situation changed dramatically on March 4 when previously announced trade tariffs took effect. The U.S. implemented a 25% tariff on most imports from Canada and Mexico, with a 10% duty on Canadian energy products.
"This is the biggest bunch of self-serving bullsh*t I have ever heard. In your world, there is no ownership. Just speculation," billionaire Mark Cuban said regarding Trump-themed tokens.
The escalating trade tensions negatively impacted financial markets and cryptocurrencies. Bitcoin dropped below $83,000, while Ethereum sank to a 16-month low. Meme coins were hit particularly hard, with Trump-themed tokens among the biggest losers.
MAGA, another Trump-related token, has experienced an even more dramatic decline. After reaching $17 in June 2024 with a market cap approaching $800 million, it now trades at just $0.32 — a 98% crash from its peak.
Some analysts remain optimistic despite the downturn. X user CryptoELITES has set target prices of $25 and $45 for TRUMP in the short term, with a potential rally to $75. Others, including former Coinbase CTO Balaji Srinivasan, have criticized such tokens for damaging the cryptocurrency sector's reputation rather than legitimizing it.
The significant pullback highlights the volatile nature of meme coins, which can cause substantial losses for inexperienced investors. Market observers expect these Trump-related tokens to experience additional volatility as they often react to presidential announcements and actions.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.