Ms. Trump told "Hannity" that former Vice President Joe Biden's bid has taken a massive hit as he has now failed to reach the top three in both New Hampshire and Iowa.
Meanwhile, the campaign of Sen. Bernie Sanders, I-Vt., goes from strength to strength, drawing massive crowds and recording top-two finishes in the early-state contests.
She noted Sanders is a "self-declared socialist" and that fact alone frightens the party establishment who are looking for a candidate with more crossover appeal.
"This is who was at the top of the Democratic Party right now. And I think it is probably making the establishment folks in the Democratic Party very, very nervous," she added.
"They know the only energy behind Bernie Sanders is on the very, very far radical end of their base there."
Trump said Sanders' campaign is a hard "sell" to moderates who do not want radical change to the American system -- and contrasted that with the GOP unity around her father-in-law.
She went on to cite figures from the president's Monday rally in the Granite State, for which 52,000 people RSVP'd. She said one-quarter of those people were registered Democrats and just about one-sixth did not vote in 2016.
"So, I think the Democrats are probably getting really nervous seeing these results come in," she told host Sean Hannity. "I think the Democrats are probably very, very worried about the base of their party and their future going forward. I sure would be."