Donald Trump’s WLFI-Backed USD1-Paired Meme Tokens Yield Early Returns for Investors

An impressive increase in USD1-linked meme coins has been observed on the BNB chain, particularly stemming from the BUILDon meme initiative.

Since May 21st, these tokens have swiftly captured more than 50% of the overall meme coin trading volume on BNB, climbing to almost 90% in the following days, as per recent evaluations from TK Research.

The Buzz Around USD1 Meme Coins

BUILDon currently represents over 90% of the daily trading activity and possesses 28.4% of the total meme coin holders, solidifying its leading role in this specialized sector. The excitement around these coins has led to significant price surges, benefiting early stakeholders handsomely. At present, more than half of these traders are enjoying profitable trades, which may suggest impending profit-taking will transpire.

However, TK Research cautioned that such profit adjustments could induce short-term price declines, heightening the risk for existing investors and traders amidst these elevated price points.

Upon examining the profitable traders, the research entity discovered that the majority have reaped gains ranging from $1 to $50, reflecting many modest, early successes. Notably, 21% of these lucrative traders have realized profits exceeding $1,000, underscoring considerable earnings within a significant segment of the market.

This accumulation of profits escalates the probability of selling pressure as these individuals aim to secure their gains. For new investors, entering the market at this juncture entails heightened risks, with potential short-term declines anticipated as initial investors cash out.

Ascendancy of USD1

USD1, the stablecoin launched by Trump-backed World Liberty Financial in March, has swiftly garnered popularity. With a market capitalization of $2.15 billion, it stands as the fifth-largest dollar-pegged token, following major players like Tether (USDT), USD Coin (USDC), Dai (DAI), and Ethena USDe currently.

A significant driver was the announcement made at the Token2049 conference in Dubai earlier this month, revealing that USD1 would be utilized to finance a $2 billion investment in Binance.

Furthermore, Binance has recently announced its intent to list USD1, enhancing both liquidity and global exposure for this rapidly emerging stablecoin. Presently, USD1 can be traded on platforms such as KuCoin and functions across both the Ethereum and BNB Chain networks. Looking ahead, the project aims to broaden its cross-chain compatibility by integrating Chainlink’s technology to facilitate trading across various blockchains.