- Memecoins are increasingly seen as high-risk, high-reward hedges
- Could this trend signal a shift in memecoin market dynamics?
Bitcoin [BTC] has dropped by over $90 billion in market capitalization since 2 April, dragging memecoins down by $5.88 billion. TRUMP led the losses among big-name memecoins, sinking to an all-time low of $7.
However, while the overall market is bleeding, some new tokens are defying the trend – Soaring on hype and social buzz. Are these breakout memecoins slowly becoming a hedge against the downturn?
Selective memecoins’ market decoupling
Among high-cap memecoins, Fartcoin (FARTCOIN) has emerged as the standout performer, notching an impressive 134.41% monthly gain, while CHEEMS followed with a 72% rally.
Despite still trading 77% below its all-time high of $2.70, Fartcoin’s resilience has been notable. Especially as broader market conditions remain turbulent. Its 1D price chart highlighted strong accumulation phases too.
On 06 April, as Bitcoin broke below its $80k support and plunged to a five-month low of $75k, Fartcoin defied the trend. It soared by 24.45% the next day.
Source: TradingView (FARTCOIN/USDT)
Meanwhile, Dogecoin (DOGE), the largest memecoin by market cap, managed only a 0.21% uptick, underperforming its mid-cap rival. This underwhelming performance hasn’t been isolated though.
Other high-cap memecoins have struggled to keep pace too, hinting at a potential liquidity shift towards smaller, high-growth tokens.
A new trend in crypto hedging?
Typically, in speculative markets, strategic risk management often leads investors to memecoins. Why? Their volatility presents high-yield opportunities, making them an attractive hedge during broader market drawdowns.
Case in point – While Bitcoin alone shed $90 billion in market capitalization, the memecoin sector saw a comparatively minor $5.88 billion dip – Underscoring its resilience.
This seemed to be in line with AMBCrypto’s thesis that capital is rotating into newer, high-growth assets, rather than stagnating in legacy holdings.
Supporting this trend, fresh data from LunarCrush showcased a surge in engagement around select memecoins.
Source: LunarCrush
Notably, none of the top ten spots seemed to be occupied by older assets. At the time of writing, Fartcoin was still dominant across multiple timeframes, with trading volume surging by 18% to $370.03 million.
This marks a pivotal shift. Capital is actively flowing into emerging, high-growth assets, reinforcing the idea that newer memecoins are becoming the preferred hedge during volatility.
As capital shifts, keeping an eye on this trend could help spot the next big gainers.
