On Monday, the Solana SOL/USD blockchain faced significant network congestion as excitement surrounding meme tokens linked to President-elect Donald Trump resulted in record transaction volumes. This surge led to technical challenges for Jito Labs, a crucial infrastructure provider. What Occurred: Jito Labs reported “severe degradation” of its Block Engine API due to “unprecedented load levels. ” The company later indicated that service stability improved following emergency interventions. While the Solana network continued to process blocks, Jito's transaction submission system was momentarily affected. Solana’s official account on X retweeted a message from Jito Labs. This congestion coincided with the launch of the MELANIA token on Solana, introduced by Melania Trump, which skyrocketed over 21, 000% within 24 hours, achieving an $11. 39 billion market cap. This came after the launch of the OFFICIAL TRUMP token, which saw a 36% decline in value from $73 to $46 on Sunday night, wiping out about $5 billion in market capitalization. The volatility extended beyond meme tokens, influencing major cryptocurrencies as well. Bitcoin BTC/USD fell from $106, 180 to $99, 622, and Ethereum ETH/USD dropped from $3, 414 to $3, 150.

However, both digital currencies have since bounced back, with BTC climbing to $108, 560 and ETH increasing to $3, 423. See Also: Elon Musk’s DOGE Co-Lead Vivek Ramaswamy Expected to Withdraw from Trump Admin Task Force While Pursuing Ohio Governorship Bid Significance: Cryptocurrency analyst Ali Martinez revealed a successful short position on the OFFICIAL TRUMP token. Trader Altcoin Gordon disclosed opening a short position of $500, 000 with a liquidation price set at $90, aiming for $55 to potentially net $2. 7 million in profit. These developments underscore the increasing influence of political meme tokens on blockchain infrastructure and market stability. Reports suggest that CIC Digital LLC, an affiliate of the Trump Organization, alongside Fight Fight Fight LLC, collectively holds 80% of the OFFICIAL TRUMP token supply. The timing of these market shifts is particularly noteworthy, as they coincide with the Martin Luther King Jr. Day holiday, during which traditional U. S. stock exchanges are closed, and with Trump gearing up for his presidential inauguration scheduled for Monday. Read Next: Bitcoin, Ethereum, and Dogecoin Plunge as Official Trump Memecoin Loses Momentum: Analyst Claims ‘Bright Prospects Are Ahead’ For These Coins As Dollar Index Declines Image Via Shutterstock