Hedera (HBAR) experienced a significant downturn today, primarily driven by the market's reaction to the launch of a Donald Trump-themed memecoin on the Solana network. The memecoin, which quickly surged in value, shifted investor attention and demand towards Solana's SOL tokens, leading to a sell-off in other cryptocurrencies, including HBAR. The sudden interest in the Trump memecoin, which was issued from Trump's verified accounts, created a ripple effect across the crypto market, impacting major tokens like XRP and Ethereum as well.
The excitement surrounding the Trump memecoin overshadowed recent positive developments for HBAR, such as its partnership in the RWA tokenization market and rumors of an upcoming HBAR ETF. Despite these promising prospects, the market's focus on the new memecoin led to profit-taking in HBAR, which had recently reached a 38-month high. The shift in sentiment was further exacerbated by the perception that the Trump memecoin's choice of Solana over Ethereum could be bearish for other blockchain networks.
The current price of HBAR is $0.341475, reflecting a sharp decline of 8.97% today. This drop comes after reaching a high of $0.384003 earlier in the day.