Memecoin sensation Fartcoin is leading the cryptocurrency market higher, rising 47% on the first trading day of 2025.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Fartcoin, which is a small, highly speculative cryptocurrency, is up sharply on heavy trading volumes on January 2. The digital token, known as a memecoin, has now risen 3,300% in the past 12 months, climbing to its current level of $1.36 from only $0.04 a year ago.
Crypto Mania
Analysts say the continued rise of Fartcoin is indicative of the mania surrounding cryptocurrencies that has gripped investors in recent months. Bitcoin (BTC), the largest crypto by market capitalization, is up 3% and trading above $97,000 to start the New Year.
Ethereum (ETH), the second biggest cryptocurrency, is also up 3% and trading at $3,465 to begin 2025. Smaller cryptocurrencies are seeing even bigger gains, with Solana (SOL) up 7%, Dogecoin up 5%, and XRP up 4%.
The Trump Effect
The rise of Fartcoin and more substantial cryptocurrencies appears to be fueled by continued anticipation of a more crypto-friendly administration under incoming U.S. President Donald Trump. Trump has promised supportive crypto legislation and to create a strategic Bitcoin reserve.
Analysts remain bullish on the outlook for crypto, with firms such as Galaxy Research predicting large-scale institutional, corporate, and state adoption of Bitcoin and other cryptos in the year ahead. Galaxy Research is forecasting that Bitcoin’s price will reach $185,000 this year and that Ethereum’s price will top $5,500.
Bitcoin’s price rose a little more than 110% in 2024, outpacing gains in equity markets.
Is BTC a Buy?
As Fartcoin is not covered by any Wall Street analysts, we turn instead to the price movements of Bitcoin over the past three months. As one can see from the chart below, the price of BTC has risen 54% in the last few months, with much of that gain coming since the U.S. election was held on November 5.
