Fartcoin, a memecoin with no utility, made headlines on December 18 when it briefly surpassed a market capitalization of $1 billion. This occurred despite a broader downturn in the altcoin market, which saw many cryptocurrencies suffer double-digit losses. Over the past 30 days, Fartcoin gained 113%, standing out as a major outlier during a difficult period for the market.
Between 8:20 pm and 9:00 pm UTC on Dec.18, Fartcoin’s price spiked 21%, reaching $1.02 and pushing its market cap to $1.02 billion. Within hours of reaching the $1 billion mark, the coin dropped by 16% and surged again. At the time of this writing, the token is trading at $1.06.
What Led To This Surge?
The sudden rise of Fartcoin occurred just after the U.S. Federal Reserve announced a 25-basis-point rate cut. The Fed also signaled that fewer rate cuts might occur in 2025 than initially expected, which impacted the crypto market and led to some investors seeking safer options. Fartcoin, despite its lack of utility, seemed to attract investors amid this uncertainty.
The unexpected surge in Fartcoin’s price drew some lighthearted responses from investors. Brandon Beylo, an investor, tweeted that “the funniest possible outcome is usually the most likely,”
Similarly, the investment research firm Hedgeye referred to the Fartcoin rally as investors “fleeing risk assets” and seeking safety.
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Users Mocked Fartcoin Reaching $1B Marketcap
Launched on Oct. 24, Fartcoin has already experienced price swings. After briefly reaching a market cap of $423 million on Nov. 22, the coin saw its value drop to $160 million by Dec. 5.
Despite the humor surrounding Fartcoin’s performance, people are questioning the state of the crypto market. Bob Elliot, co-founder of Unlimited Funds, pointed out that if Fartcoin is experiencing rapid growth, it might suggest that the Federal Reserve’s monetary policy is not as restrictive as expected.
Others, like Bone Fide Wealth president Douglas A. Bentforth humorously noted that while the Fed cannot “own Bitcoin,” there is no mention of Fartcoin in their policies.
