The TRUMP meme coin, inspired by U.S. President Donald Trump, has been one of the most talked-about assets in the crypto market since its debut over the weekend.
The coin sparked a trading frenzy, attracting hundreds of thousands of new traders. On-chain data now reveals some fascinating insights into the coin’s trading behavior, including who made significant profits and who lost big.
Massive Trading Frenzy and Sharp Decline in Activity
In the first four days following the launch of TRUMP, the token attracted a staggering 929,543 new on-chain traders. The peak of this frenzy occurred on January 18, with 42,208 new traders joining the market per hour.
However, after this surge, the trading activity quickly fizzled out, with the number of new traders falling to just 1,383 per hour by January 22.
While the excitement was high, the volatility was even higher. TRUMP’s price went through sharp fluctuations, with a notable panic sell-off on January 20.
For context, TRUMP opened for trading at $0.1824 on January 18 but reached an all-time high of approximately $80 the same day. This represents an extraordinary 43,759% surge in one day. Meanwhile, the price also tanked to around $30 the same day amid massive profit-taking.
This sell-off saw addresses within the so-called “conspiracy group” — those who only sold and never bought — dump over $310 million worth of the token.
Who Made Big Profits from TRUMP?
Despite the volatility and sudden shifts in trading volume, several addresses managed to cash in on the TRUMP surge. According to on-chain data by Chinese analyst Ning Ning, the profit-and-loss (PNL) distribution for TRUMP holders largely follows a normal distribution, with a few standout earners:
- 28 addresses made over $10 million from TRUMP trades.
- 424 addresses earned between $1 million and $10 million.
- 16,791 addresses saw profits ranging from $10,000 to $1 million.
These fortunate few capitalized on the explosive price movement during the meme coin’s brief, intense rally. However, many traders also faced losses as the price corrected.
Losses Mount for the Majority of TRUMP Traders
The enthusiasm for TRUMP was not without its casualties. The majority of holders found themselves facing losses as the coin’s price fluctuated. The distribution shows:
- 259,429 addresses earned $1,000 or less.
- 486,421 addresses lost between $0 and $1,000.
- 65,763 addresses faced losses ranging from $1,000 to $10,000.
- 33 addresses lost over $10 million.
Essentially, the overwhelming majority of traders fell into the losing category, with many facing small to mid-range losses.
Whale Behavior and Market Movements
Furthermore, on-chain data shows TRUMP whales played a crucial role in influencing the token’s price movements. On January 18, whales began building positions, only to reduce their holdings rapidly by January 20.
For context, this was the inauguration day of Trump as the 47th U.S. president. The TRUMP meme coin tanked by over 50% on this day to trade at $35.
Meanwhile, these whales bought back in at lower levels as the price dropped. They capitalized on the dip before trimming their positions during the subsequent rebound. At press time, TRUMP has settled around $43, up by 23%.
With the volatility beginning to subside, the number of active TRUMP holders has slowly decreased from a peak of 852,000 to around 770,000 as hot money exits the market.
