Solana is retreating 4% in the past 24 hours just two days after the new pro-crypto President of the United States, Donald Trump, launched a meme coin called $TRUMP on this network that rapidly congested its mainnet.
On Sunday, the native asset of the Solana blockchain reached an all-time high of $295 per coin after the President made the announcement. However, the price quickly started to fall as analysts began to dig deeper into the tokenomics of Trump’s celebrity token to find out that insiders held the majority of its supply
Public distribution is 10%, Liquidity 10%. 6 Different “Creator and CIC Digital Groups” that unlock after 3-12 months and vest over 24 months.
That is a wild distribution for a meme coin. pic.twitter.com/NblVGFicPE
— Coffeezilla (@coffeebreak_YT) January 18, 2025
The notable blockchain investigator Coffeezilla was one of the first to share details about how $TRUMP was allocated. Initially, only 200 million tokens out of a total supply of 999.9 million were freed.
Of that total, 80% of the supply appears to be in the hands of insiders. This is a red flag for any kind of crypto project, as the risk of a rug pull is significantly high in these scenarios.
Although it is hard to stomach that the President of the U.S. could be involved in that kind of scheme, the price action speaks for itself as the token’s market cap fell from a record high of $15 billion to less than $8 billion in a matter of hours.
For Solana, the launch was a huge success, primarily as it was a pad in the back for the network as Trump – or his team for that matter – selected it as the home for such a widely popular digital asset.
Meanwhile, data from The Block shows that Solana transaction fees surged to nearly $34 million on Sunday alone, which is roughly 9 times the daily average.
Solana Drops Below Key Support-Resistance Area
Solana’s move to all-time highs has been followed by two consecutive negative sessions. Meanwhile, the day before $TRUMP was launched, the price action already struggled to clear the December peak of around $265 per token.
Now, the price has dropped below a former area of resistance that may not have turned into support at $247. If the price fails to climb above this area, the short-term outlook for $SOL is not too good, as bears could take full control of the price action in the following days.
Now that Trump has been sworn in as President, the market’s volatility and expectations surrounding this event have calmed a bit. Hence, in the absence of another catalyst that propels the price of digital assets higher, both early and late buyers may start to cash out from the pre-speech rally.
The hourly chart shows that the $230 level is a key support to watch. If the price holds above that line, the pullback’s strength will be limited. However, if that level is broken, Solana could drop to the $210 area.
Solaxy Solves Solana’s Congestion Issues Produced by Events Like $TRUMP’s Launch
A new Solana layer-two scaling protocol is about to be launched, its name is Solaxy ($SOLX) and its presale event has been widely successful among investors as this project promises to solve an issue that has prevented this blockchain from growing further.
Events like the launch of $TRUMP have resulted in severe congestion for the Solana network. This undermines the blockchain’s credibility and affects the value of the $SOL token in the long term.
Solaxy solves this issue by bundling a high number of offline transactions and incorporating them into a single block to alleviate the mainnet’s burden. In just a month and a half, the Solaxy presale has raised almost $13 million.
At a discounted price of $0.00161, the native asset of this L2 project, $SOLX, offers significant upside to early buyers who will be positioned favorably to reap significant returns when the token is listed on exchanges.
To buy $SOLX, visit the official website of Solaxy and connect your wallet. You can rely on the Best Wallet app if you need to store the asset once the claim date comes. Meanwhile, it is possible to buy this token with a bank card.
This price will only be available for the next 48 hours, and it will then be increased to compensate early supporters. Don’t miss a minute. Invest in what could be the best-performing layer-2 token of this year.
