Key Insights
- Traditional assets have been bleeding red for weeks now, and even mainstream digital assets like crypto haven’t been spared.
- Over the last week, Bitcoin has taken a massive hit after shedding more than $90 billion in market cap since 2 April.
- Yet while a majority of the market remains in the red, certain memecoins are still afloat.
- Fartcoin has emerged as a serious contender in terms of performance, alongside others like SPX and Cheems.
- The memecoin market is changing and is no longer a playground for jokes and internet culture.
- Memecoins appear to be hitting a higher purpose as market hedges, especially in speculative times .
Traditional assets have been bleeding red for weeks now, and even mainstream digital assets like crypto haven’t been spared.
Amid trillions lost in the stock market and billions from the crypto market, a surprising aspect of the crypto market is stepping up as the “perfect” hedge- Memecoins.
This asset class was once written off as a speculative joke with no real utility.
However, some of them are now showing signs of becoming major investment options.
As the market struggles with turbulence, a few standout memecoins are defying the odds.
Here’s why investors are starting to take notice.
Bitcoin Slips And Memecoins Fight Back
Over the last week, Bitcoin has taken a massive hit after shedding more than $90 billion in market cap since 2 April.
This massive drawdown has affected the crypto market as a whole, including the memecoin sector, which lost around $5.88 billion during the same period.
One of the leaders of this memecoin dump was the infamous $TRUMP token, which plunged to a new all-time low of around $7.
Other major memecoins also saw downward slides, including Dogecoin, which managed only a meager 0.21% gain.
Yet while a majority of the market remains in the red, certain memecoins are still afloat.
The Rise of Fartcoin and Other Unexpected Winners
Fartcoin, despite its strange name, has emerged as a serious contender in terms of performance.
The cryptocurrency has so far seen a massive 134.41% monthly gain, along with a sharp 24.45% rise on April 7 alone.
The interesting thing about this development is that Fartcoin’s rise happened right as Bitcoin sank to a five-month low of $75,000.
Fartcoin’s recent price action appears to be much more than a mere “lucky pump.”
The cryptocurrency’s daily chart shows an interesting pattern, as we will soon see, indicating that investors are strategically buying the dip.
While the cryptocurrency is still down by around 77% since its all-time high of around $2.70, its ability to resist the broader market sell-off is drawing attention.
Another major performer is CHEEMS, which posted a 72% rally during the same timeframe.
These mid- and small-cap memecoins appear to be decoupling from the rest of the market and are defying Bitcoin itself.
Is Fartcoin Now a Safe Haven in Times of Turmoil?
FARTCOIN’s performance, as mentioned, isn’t a one-time fluke. The cryptocurrency previously defied the bearish market sentiment during the last market scare back in December.
At that time, a hawkish U.S. Federal Reserve policy caused the initial Bitcoin tumble of 13%, from $106,000 to $92,000.
Even gold and the S&P 500 dropped alongside the stock market.
Yet, FARTCOIN rallied 60% amid this bearish wave, hitting a new local high of $1.26 from $0.79.
Fast forward to April, and the global markets are in turmoil again due to tariff fears and risk-off sentiment.
Gold and the S&P 500 are both down by over 10% in a week, while BTC and ETH are down by 6% and 16%, respectively.
Once again, Fartcoin is showing its strength again with a 16% rise on the weekly timeframe.
The 4-hour chart shows a cup and handle formation for the cryptocurrency as illustrated above, indicating that the rally might not be over yet.
Are Investors Using Memecoins as a Hedge?
This repeated pattern of memecoins rising when the rest of the market crashes indicates that some investors might be using them as speculative hedges.
Highly volatile markets tend to see assets like gold or US treasuries attracting capital.
However, in today’s meme-driven culture, newer assets that promise high short-term returns (regardless of how unserious they seem) are becoming very attractive.
The memecoin market has also declined by a modest $6 billion so far, which is very mild compared to Bitcoin’s $90 billion drop .
This indicates that money is leaving the memecoin sector but not nearly at the same rate as the rest of the market.
Investors are choosing to stick to smaller, high-growth plays instead of high-cap tokens like DOGE or SHIB.
Social Media Hype and Trading Volumes Tell the Story
According to data from LunarCrush, engagement metrics show that newer memecoins are stealing the spotlight from older ones.
An interesting data point in these insights shows that Fartcoin has been consistently high in terms of social volume and trading activity.
The memecoin even recently saw a 18% jump in daily volume to $370 million.
These trends further reinforce the outlook that investors are looking for newer, high-risk assets that offer upside even in terms of uncertainty.
Unlike large-cap tokens with more predictable markets, these smaller tokens tend to feed off community hype and are therefore prone to sharp short-term gains.
What This Means for the Future of Memecoins?
The memecoin market is changing and is no longer a playground for jokes and internet culture.
Memecoins appear to be hitting a higher purpose as market hedges, especially in these speculative times .
Still, it is important to approach this trend with caution, especially as the market is currently facing turbulent times.
Overall, memecoins are clearly having the moment, especially in times when even gold and treasuries are faltering.
The market is signaling that memecoins might be evolving into high-risk hedges for the new generation of investors.
As capital continues to flow into these unpredictable market sectors, it is worth keeping a close eye on how they perform in the future.
