An individual with significant holdings, known as a whale, has recently made a substantial shift in their investment strategy by exchanging their positions in Dogwifhat (WIF) and Bonk (BONK) for Fartcoin (FARTCOIN), an AI memecoin.
Based on data provided by LookOnChain, this whale traded $1.03 million worth of WIF and $833K worth of BONK for FARTCOIN, resulting in a total of 7.55 million Fartcoin tokens valued at $9.36 million presently.
These actions suggest that the whale has confidence in the potential of AI memecoins to outperform traditional cryptocurrencies in the year 2025. But why did they choose Fartcoin specifically over other AI tokens?
Surge in Fartcoin Popularity in December
Many traders and investors tend to gravitate towards assets with significant popularity or trading volume, as these factors contribute to higher liquidity levels.
Since the middle of December, Fartcoin has emerged as the most talked-about AI memecoin, commanding a 22% share of agent mindshare according to Cookie.fun, a platform that aggregates data on agents. AIXBT and Virtual (VIRTUAL) follow behind at 8% and 5%, respectively.
Due to its widespread popularity, Fartcoin has experienced a notable price surge, even surpassing Goatseus Maximus (GOAT) in terms of market performance. Fartcoin and GOAT have both seen increased adoption due to the endorsement from the AI agent Truth Terminal.
Throughout December, Fartcoin has witnessed a remarkable rally of nearly 350%. Following the whale’s actions, this AI meme coin surged by 52% on Christmas Eve, emerging as one of the few assets to benefit from a festive rally.
This recent uptrend effectively wiped out the earlier losses recorded in December and approached the upper limit near $1.4.
If Fartcoin maintains its dominant mindshare, any retracement from the peak levels to the mid or lower ranges could present a lucrative buying opportunity for investors.
Furthermore, data from derivatives markets indicates a positive market sentiment, with trading volumes soaring by 120% and open interest (OI) spiking by 45% within the last 24 hours.
These figures suggest that the Christmas Eve surge was largely fueled by speculative trading activities in the Futures market.
Presently, the short-term outlook remains bullish, as evidenced by the significant long positions outnumbering short positions according to the Long/Short ratio.