Solana Stumbles as Trump Memecoin Craze Overloads Network

The Solana blockchain faced significant network disruptions as the launch of memecoins by U.S. President-elect Donald Trump and First Lady-elect Melania Trump triggered a surge in trading activity. The Official Trump (TRUMP) memecoin debuted on January 18, followed by the Official Melania (MELANIA) token on January 19, just days before the presidential inauguration on January 20.

Network Congestion and User Complaints

The memecoin craze led to a dramatic increase in network activity, reportedly causing congestion on Solana. According to pseudonymous crypto trader Dave, the Solana blockchain explorer had not processed new transactions for 30 minutes as of 9:43 pm UTC on January 19. Other users echoed these concerns, reporting “500 Internal Server Errors” on Solscan when attempting to complete transactions.

The situation has reignited debates around Solana’s scalability, particularly the challenges faced by monolithic blockchains when handling sudden traffic spikes. Solana’s previous major outage in February 2024, which halted block production and required had not processed new transactions validators to restart the network, has been a focal point in this ongoing discussion.

Despite the congestion issues, Solana’s data shows that the network has maintained 100% uptime since February 6, 2024, a milestone highlighted by the blockchain’s supporters.

Controversy Surrounding Token Allocations

The Trump family’s memecoins have not only captured mainstream attention but also sparked scrutiny regarding their token allocations. According to the MELANIA token’s website, the distribution was set at 35% for the team, 20% for the treasury, 20% for the community, 15% for the public, and 10% for liquidity.

However, blockchain analytics platform Bubblemaps reported discrepancies, revealing that nearly 90% of the MELANIA token supply was held in a single wallet. This finding contradicted the official allocation claims and raised concerns among investors about potential centralization and lack of transparency.

Implications for Solana and the Crypto Market

The memecoin frenzy highlights the growing influence of high-profile figures in the crypto space and the ongoing scalability challenges for blockchains like Solana. While the network has demonstrated resilience in recent months, the incident highlights the need for robust solutions to handle surges in demand without compromising performance or user experience.