The Solana (CRYPTO: SOL) blockchain experienced significant network congestion on Monday as enthusiasm around President-elect Donald Trump-themed meme tokens triggered unprecedented transaction volumes, leading to technical difficulties for key infrastructure provider Jito Labs.
What Happened: Jito Labs reported “severe degradation” of its Block Engine API due to “unprecedented load levels,” though the company later confirmed service stability had improved following emergency mitigation efforts. While the Solana network continued processing blocks, transaction submission through Jito’s service was temporarily impacted.
Solana’s official X account retweeted a post from Jito Labs.
The congestion coincided with the launch of the MELANIA token on Solana by Melania Trump, which surged over 21,000% within 24 hours to reach an $11.39 billion market capitalization. This followed the recent launch of the OFFICIAL TRUMP token, which experienced a 36% price drop from $73 to $46 on Sunday evening, erasing approximately $5 billion in market value.
The market turbulence extended beyond meme tokens, impacting major cryptocurrencies. Bitcoin (CRYPTO: BTC) dropped from $106,180 to $99,622, while Ethereum (CRYPTO: ETH) fell from $3,414 to $3,150. However, both cryptocurrencies have since recovered, with BTC reaching $108,560 and ETH climbing to $3,423.
Why It Matters: Cryptocurrency analyst Ali Martinez revealed a successful short position on the OFFICIAL TRUMP token, while trader Altcoin Gordon disclosed opening a $500,000 short position with a $90 liquidation price, targeting $55 for a potential $2.7 million profit.
The events highlight the growing impact of political meme tokens on blockchain infrastructure and market stability. Reports indicate that CIC Digital LLC, an affiliate of the Trump Organization, and Fight Fight Fight LLC collectively own 80% of the OFFICIAL TRUMP token supply.
The timing of these market movements is particularly notable as they occur during the Martin Luther King Jr. Day holiday, with traditional U.S. stock exchanges closed and Trump preparing for his presidential inauguration scheduled for Monday.
Read Next:
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
