Recent developments in the cryptocurrency space have highlighted its growing influence on mainstream markets and global interest. From US President Donald Trump’s surprising foray into meme coins, which spurred a surge in search interest for “crypto,” to his executive order proposing a strategic crypto reserve that fueled record-breaking inflows into cryptocurrency exchange-traded products (ETPs), the intersection of politics and digital assets is making waves.
Trump’s Meme Coin Debut: The Ripple Effect on Crypto Interest and Market Dynamics
Former US President Donald Trump made waves in the cryptocurrency market with the launch of his official meme coin project, sparking a renewed global interest in digital assets. The release of the Official Trump (TRUMP) token on Jan. 18, just days before his inauguration, created an unprecedented buzz, driving Google search interest for “crypto” to its highest level since Bitcoin’s all-time high in November 2021.
Adding to the fervor, First Lady Melania Trump launched her own meme coin, Melania Meme (MELANIA), shortly after. Both tokens initially experienced strong performance, but like many speculative assets, their prices soon plummeted, leaving many investors in the red.
The impact of Trump’s meme coin launch reverberated beyond the crypto market, influencing global internet trends. Google Trends data revealed a sharp spike in search interest for “crypto,” reaching levels not seen since the height of the 2021 bull market when Bitcoin soared to $67,000. Other related keywords, such as “meme coin,” “buy crypto,” and “Solana,” also saw significant surges in search volume during this period.
This sudden interest shows the power of high-profile figures like Trump in capturing public attention and introducing new demographics to the crypto market. However, the surge in popularity wasn’t limited to online searches—it also extended to tangible metrics like app downloads and blockchain activity.
Trump’s meme coin debut didn’t just affect search trends; it also reshaped the digital finance landscape. On Jan. 22, crypto-related applications dominated the finance category of Apple’s App Store in the United States. Leading the pack were crypto trading platforms like Crypto.com, Moonshot, and Coinbase, which claimed the top three spots. Other popular apps, including Coinbase Wallet, Robinhood, Binance.US, DEX Screener, and Kraken, also climbed the charts, solidifying crypto’s presence in mainstream financial tools.
The TRUMP token also drove significant activity on the Solana blockchain, with data from digital asset custody firm Copper reporting a record-breaking number of new Solana wallet addresses. Nearly 9 million new addresses were created in the days leading up to Trump’s inauguration.
A survey conducted by NFTevening on Jan. 20 revealed that Trump’s meme coin launch brought a wave of first-time investors into the market. According to the survey, 42% of TRUMP token buyers had never invested in cryptocurrency before.
The surge in new investors echoes the broader trend of meme coins serving as entry points into the crypto market. Tokens like Dogecoin and Shiba Inu have historically played similar roles, captivating audiences with their humor and accessibility.
The Risks of Meme Coin Hype
While the TRUMP meme coin brought unprecedented attention to the crypto market, it also raised significant concerns. Critics argue that the hype-driven nature of meme coins can lead to financial losses for inexperienced investors. The TRUMP token’s price, for example, has dropped by more than 60% since its initial peak, with community members reporting millions in losses.
Crypto scam investigator Coffeezilla didn’t hold back in his criticism, stating that the meme coin’s launch “should be a crime.” His concerns were echoed by California Representative Maxine Waters, who warned that the TRUMP token could pose risks to national security due to its speculative nature and potential for misuse.
The Trump meme coin saga places the spotlight on both the potential and pitfalls of celebrity influence in the cryptocurrency market. On one hand, high-profile endorsements can drive adoption and bring new investors into the fold. On the other, they can amplify the risks associated with speculative assets, particularly for those unfamiliar with the volatile nature of the crypto market.
While the TRUMP token may have captured headlines and spurred a wave of new interest, its long-term impact on the crypto market remains to be seen. As the price continues to decline, the question of whether this event will be remembered as a catalyst for innovation or a cautionary tale looms large.
Crypto ETPs Witness Strong Inflows Amid Trump’s Strategic Crypto Reserve Proposal
In other news, the cryptocurrency market is experiencing a surge of renewed interest as exchange-traded products (ETPs) continue to attract billions in inflows. The momentum appears to be fueled, in part, by a recent executive order from US President Trump proposing a potential strategic crypto reserve. This groundbreaking policy initiative has sparked optimism among institutional investors, further solidifying cryptocurrency’s position in the global financial ecosystem.
According to a Jan. 27 report by crypto investment firm CoinShares, $1.9 billion poured into crypto ETPs last week, marking the third consecutive week of inflows and bringing the year-to-date (YTD) total to an impressive $4.7 billion.
Bitcoin-based ETPs led the charge, capturing $1.6 billion in inflows last week. Year-to-date, Bitcoin ETPs have accumulated $4.4 billion, accounting for a staggering 92% of all crypto ETP inflows. The surge in interest comes on the heels of Bitcoin setting a new all-time high of $109,000 on Jan. 20, further cementing its status as the dominant asset in the cryptocurrency market.
Interestingly, short Bitcoin ETPs also gained traction last week, attracting $5.1 million in inflows. This signals that while bullish sentiment prevails, some investors are hedging their positions amid Bitcoin’s volatile price movements.
While Bitcoin dominates the inflows, other assets are making notable contributions to the growing popularity of crypto ETPs. Ethereum-based ETPs saw inflows of $205 million last week, rebounding from early-year selloffs and bringing their YTD total to $177 million.
Altcoins also showed strong performance, with XRP ETPs recording $18.5 million in inflows, albeit a 40% decline from the previous week. Solana, Chainlink, and Polkadot also attracted investor interest, with inflows of $6.9 million, $6.6 million, and $2.6 million, respectively. This diversification indicates that institutional investors are increasingly exploring opportunities beyond Bitcoin and Ethereum.
The growing interest in crypto ETPs has significantly boosted total assets under management (AUM), which now stand at $171 billion. Bitcoin ETPs continue to dominate, accounting for 82% of the total AUM.
Among issuers, BlackRock emerged as the clear leader, contributing $1.5 billion of the $1.9 billion in weekly inflows—approximately 76% of the total. The financial giant’s YTD inflows now stand at $2.9 billion, with an AUM of $64 billion.
Fidelity and ARK also made significant contributions, with inflows of $202 million and $173 million, respectively. However, not all issuers benefited from the wave of optimism. Grayscale, one of the early pioneers in crypto investment products, continued to experience outflows. The firm recorded $124 million in weekly outflows, bringing its YTD outflows to $392 million.
President Trump’s executive order proposing a strategic crypto reserve is being hailed as a transformative moment for the industry. Market analysts believe the proposal has the potential to accelerate institutional adoption of cryptocurrencies, further legitimizing them as an asset class. Despite the optimism, some experts caution against overexuberance.
A Rare Week with No Outflows
One of the most striking aspects of last week’s performance was the absence of outflows across all digital asset investment products. According to CoinShares, this is an unusual occurrence and reflects the strong conviction among investors.
While the broader crypto ETP market thrives, Grayscale’s struggles continue. The firm has faced mounting challenges in retaining investor interest, with outflows persisting for several months. Analysts attribute Grayscale’s difficulties to increased competition and the growing popularity of other issuers like BlackRock and Fidelity.
Grayscale’s total YTD outflows of $392 million are in stark contrast to the broader market’s inflows, raising questions about the company’s future strategy in an evolving landscape.
