The Solana SOL/USD blockchain skilled important community congestion on Monday as enthusiasm round President-elect Donald Trump-themed meme tokens triggered unprecedented transaction volumes, resulting in technical difficulties for key infrastructure supplier Jito Labs.
What Occurred: Jito Labs reported “extreme degradation” of its Block Engine API because of “unprecedented load ranges,” although the corporate later confirmed service stability had improved following emergency mitigation efforts. Whereas the Solana community continued processing blocks, transaction submission by means of Jito’s service was briefly impacted.
Solana’s official X account retweeted a publish from Jito Labs.
The congestion coincided with the launch of the MELANIA token on Solana by Melania Trump, which surged over 21,000% inside 24 hours to succeed in an $11.39 billion market capitalization. This adopted the latest launch of the OFFICIAL TRUMP token, which skilled a 36% value drop from $73 to $46 on Sunday night, erasing roughly $5 billion in market worth.
The market turbulence prolonged past meme tokens, impacting main cryptocurrencies. Bitcoin BTC/USD dropped from $106,180 to $99,622, whereas Ethereum ETH/USD fell from $3,414 to $3,150. Nevertheless, each cryptocurrencies have since recovered, with BTC reaching $108,560 and ETH climbing to $3,423.
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Why It Issues: Cryptocurrency analyst Ali Martinez revealed a profitable brief place on the OFFICIAL TRUMP token, whereas dealer Altcoin Gordon disclosed opening a $500,000 brief place with a $90 liquidation value, concentrating on $55 for a possible $2.7 million revenue.
The occasions spotlight the rising impression of political meme tokens on blockchain infrastructure and market stability. Studies point out that CIC Digital LLC, an affiliate of the Trump Group, and Battle Battle Battle LLC collectively personal 80% of the OFFICIAL TRUMP token provide.
The timing of those market actions is especially notable as they happen in the course of the Martin Luther King Jr. Day vacation, with conventional U.S. inventory exchanges closed and Trump getting ready for his presidential inauguration scheduled for Monday.
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