- New user adoption and spot market purchases have driven FARTCOIN’s price higher.
- Buying sentiment in the derivative market remains strong; however, a discrepancy exists.
Fartcoin [FARTCOIN] remains among the major market movers in the last 24 hours as the memecoin rallied by over 17%.
Several sentiments in the market show why this drive occurred and why the asset could potentially continue to record more gains in the coming trading sessions.
More users allocate funds to the memecoin
More users have allocated funds to the memecoin according to data from Nansen.
At the time of writing, these new users who also purchased FARTCOIN within the timeframe totaled 451, bringing the total number of users holding the asset to over 89,000.
Source: Coinglass
Analysis shows that new users, combined with spot traders, drove total FARTCOIN purchases to an impressive $2.95 million in the past 24 hours.
This surge in new user acquisitions and significant purchasing activity has propelled FARTCOIN’s value higher.
However, the derivative market has also contributed to this movement and may potentially influence a price decline as well.
The derivative market could influence FARTCOIN’s move
Along with the spot traders, derivative traders in the market were mostly on long positions, betting on a rally.
The Funding Rate, for example, which determines which cohort of the market is paying a premium, shows that the bulls are doing so as it reads 0.0453%.
Source: Coinglass
This metric is particularly noteworthy because the Funding Rate has remained positive since the 26th of April —two consecutive days—and has continued rising, implying the bullish sentiment is high.
Similarly, the Open Interest (OI), which shows the amount of unsettled derivative contracts currently, has risen by 11.23% to $617.94 million, likely dominated by long traders in the market.
However, there’s a catch: the OI Weighted Funding Rate has dropped significantly.
Source: Coinglass
The OI Weighted Funding Rate has systematically dropped from 0.1185%, a notably high level, to 0.0067%, a much lower value.
Although this decline remains within the positive range, indicating that FARTCOIN is still bullish in the derivative market, the market’s buying volume is visibly decreasing. This reduction in volume could potentially impact market movement going forward.
Memecoin performance on a high
The memecoin performance in the market has been impressive over the past thirty days, as the buying volume has continued to grow.
The volume in the past thirty days has been high as it gained 16.15% to $6.988 billion, accompanied by a market capitalization rise of 11.96% to $58 billion.
Source: CoinMarketCap
Where there’s a corresponding rise in the market capitalization and volume, it suggests that the interest in memecoins is growing, with FARTCOIN being a main focus as the top token.