Memecoin Rally Driven by Dogecoin, Fartcoin, and Bonk Sparks 15% Market Surge

Gains in Dogecoin, Fartcoin, and Bonk helped drive the memecoin market to a 15% surge in market capitalization on Jan. 3, outperforming the broader cryptocurrency market.

Dogecoin (DOGE) rose 12% in the past 24 hours and 21% over the past week, reaching approximately $0.38, its highest price since Dec. 18, 2024. Solana-based memecoin Fartcoin jumped 18% in the last day and 69% over the week, hitting an all-time high of $1.59. Meanwhile, Bonk gained 12% in the past 24 hours and 7.3% over the week, according to CoinGecko.

These gains pushed the memecoin market’s total capitalization to $127 billion, a 15% increase in the past 24 hours. This growth outpaced the broader cryptocurrency market, which recorded a more modest 1.2% increase during the same period.

This rally highlights the continued enthusiasm for memecoins, driven by community momentum and speculative interest. Analysts note that the rise of niche tokens often coincides with periods of market volatility, as traders look for 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 hot air” typically lift memecoins.

He also noted that the recent surges follow Bitcoin’s record rally to $108,000 and President-elect Trump’s election victory, two events that have spurred heightened market speculation and excitement.

Rise of Memecoins

A memecoin is a cryptocurrency inspired by memes, trends, or jokes. While often starting as humorous projects, they can gain value through social media buzz, celebrity endorsements, or community enthusiasm.

Most recently, this trend is evident with Fartcoin, a memecoin inspired by Truth Terminal, an AI agent also credited with sparking the creation of the popular GOAT memecoin. Despite initial skepticism, Fartcoin has unexpectedly surged in popularity, experiencing a nearly 700% surge over the past 30 days, according to CoinGecko.

Chris Akhavan, Chief Revenue Officer at Magic Eden, previously told The Defiant that memecoins have also been the primary driver of decentralized exchange (DEX) volume growth in recent months. According to Akhavan, the fast-moving nature of these tokens makes it nearly impossible for centralized exchanges (CEXs) to keep up.