US President Donald Trump and his wife Melania Trump's tokens experienced a sharp decline! Here's why

The highly talked-about launch of the official memecoins of US President Donald Trump and First Lady Melania Trump has left investors facing sharp losses.

TRUMP, MELANIA Tokens Fell 50% After Profit Taking Following the Opening

In the past 24 hours, TRUMP and MELANIA tokens experienced a drop of up to 60% despite a record-breaking buying frenzy, following intense profit-taking sales.

While TRON (TRX) and Cardano (ADA), two major tokens, had transaction volumes of less than $4 billion during the same period, TRUMP generated a transaction volume of over $19 billion in just one day, while MELANIA changed hands for $4.5 billion.

Despite high activity, futures markets tracking tokens also experienced significant losses, leading to approximately $70 million in liquidations for traders betting on higher prices.

Crypto markets were anticipating President Trump to address cryptocurrency policies during his inauguration speech and potentially announce strategic Bitcoin reserve plans.

However, the lack of any announcement related to crypto caused Bitcoin (BTC) to drop from $109,000 on Monday to levels around $100,000 on Tuesday morning during Asian trading hours.

Trading activities have been sluggish since then. Data from Moonshot, one of the first platforms to list TRUMP for retail investors, shows that trading volumes dropped from an average of over $6 million on 18-19 January to just $1 million in the past 24 hours.

Despite the decline, some analysts continue to be optimistic about the long-term expectations of Trump memecoins and their impact on the wider crypto ecosystem.

Singapore-based QCP Capital noted that TRUMP's launch on Solana (SOL) could serve as a significant validation for the blockchain.