Gains in Dogecoin, Fartcoin, and Bonk helped the memecoin market surge 15% in market value on January 3, outperforming the broader cryptocurrency market.
Dogecoin (DOGE) is up 12% in the past 24 hours and 21% in the past week to about $0.38, its highest price since December 18, 2024. Solana-based memecoin Fartcoin is up 18% in the past day and 69% in a week, hitting a new all-time high of $1.59. Meanwhile, Bonk is up 12% in the past 24 hours and 7.3% in a week, according to Coingecko.
These gains have driven the total market capitalization of the memecoin market to $127 billion, growing 15% in the past 24 hours. This growth rate exceeds that of the broader cryptocurrency market, which saw an increase of only 1.2% during the same period.
This surge highlights the ongoing enthusiasm for memecoins, fueled by community momentum and speculative interest. Analysts point out that the rise of niche tokens often coincides with periods of market volatility as traders seek high-risk, high-reward opportunities.
Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors, previously told The Defiant that 'humor, novelty, algorithms, and a lot of hype' can often boost the prices of memecoins.
He also noted that the recent surge occurred after Bitcoin's record rise to $108,000 and the election of President Trump, both of which fueled heightened market speculation and excitement.
The Rise of Memecoins
Memecoins are cryptocurrencies inspired by memes, trends, or jokes. While memecoins usually start as humorous projects, they can gain value through social media buzz, celebrity endorsements, or community enthusiasm.
Recently, this trend has been exemplified by Fartcoin, a meme coin inspired by Truth Terminal, an AI agent credited with sparking the popular GOAT memecoin. Despite initial skepticism, Fartcoin's popularity has unexpectedly soared, surging nearly 700% in the past 30 days according to CoinGecko data.
Chris Akhavan, chief revenue officer at Magic Eden, previously told The Defiant that in recent months, memecoins have also been a major driver of growth in decentralized exchange (DEX) trading volume. Akhavan stated that the rapid volatility of these tokens makes it nearly impossible for centralized exchanges (CEX) to keep up.
