Smart Money Moves: On-Chain Activity Reveals Shifting Dynamics in the Memecoin Market

The memecoin market showed a clear trend of net inflows, which reveals investor confidence or interest in several of the tokens we would call memecoins.

In our last report, we signaled the potential emergence of a couple of these rising tokens as new plays to keep an eye on, even as the market remains volatile. Capital flows seem to be shifting towards these newer plays and away from supposedly more established first-generation memecoins.

The market overall experienced an influx of $5.29 million, which exceeded the outflows that totaled $4.37 million. This produced a net positive amount of $928,000. While this net figure has not knocked anyone off their feet, it certainly signifies something: the savvy traders and institutional wallets that track the movement of memecoins are doing so with bullish eyes.

FARTCOIN Dominates Inflows While JLP Sees Major Exit

Attracting the most inflows was the humorously named but surprisingly dominant memecoin, FARTCOIN, which pulled in a staggering $3.18 million in new capital. Riding a wave of social media buzz and meme-driven hype, the token now finds itself in the spotlight as smart money seems to be betting on its continued virality and liquidity growth.

Other memecoins that captured interest included POPCAT, which saw a healthy $322,000 coming in. Its memetic roots and loyal community base seem to be gaining traction once again. PNUT, another playful prescaler of the memecoin scene, followed close behind with $189,000 in new investment, suggesting that some opportunistic holders might be accumulating it in anticipation of future gains. Meanwhile, BONK and WEN must have been attracting some smart money, because they collectively saw $176,000 in new investment over the same period. That suggests there might be some slow, steady buying interest in the prescaler’s Prescale Toolbox.

Conversely, a number of prominent tokens recorded sizable capital exits, which may suggest that profit-takers are at work or investors are reallocating funds to fresh opportunities. WIF, a previously popular token, saw $520,000 head for the exits, which may signal either a fading interest from short-term traders or an expiration of WIF’s recent transitory uptrend.

Recap: Smart money on chain activities in the memecoin market for 16/04/25

Yesterday, there was more inflow than outflow

Inflow: $5.29M
Outflow: $4.37M
Volume: $9.66M
Net Volume: $928K

There was inflow into: $WEN ($84K) $POPCAT ($322K) $PNUT ($189K) #FARTCOIN ($3.18M) $BONK… pic.twitter.com/1URWhXBbe1

— Stalkchain (@StalkHQ) April 17, 2025

The largest outflow came from JLP, which saw an immense $2.01 million capital leave its ecosystem. This could indicate that large holders are reallocating their funds to trendier plays, or it could just be that they are realizing some gains. JUP had the next largest outflow at $123K, followed by ALCH at $101K and RFC at $161K. It appears that each of these was reacting to some recent price action.

Market Sentiment and Rotation Strategy

The signal volume figure of $928,000 carries cautious optimism for the market. Although the total volume traded was $9.66 million, only a small part of that resulted in net positive inflow. All of that shows that buying interest is present, but much of the balance is upheld by outflows — the surest sign of a maturing market. Because speculative interests are always balanced by anti-speculative interests, this market must be seen as highly speculative.

The shift in capital from relatively larger tokens such as JLP and WIF to newer or resurgent memecoins like FARTCOIN and POPCAT is intriguing. It’s a common strategy among smart money participants, where funds are relocated from positions that have either peaked or stabilized into tokens viewed as having higher upside potential or that are entering a new hype cycle.

Although this activity doesn’t forecast long-term trends, it does show where capital flows in the short term. Particular attention to FARTCOIN could lead to increased retail participation, especially if the meme becomes a movement and volumes rise considerably.

As always, investors are advised to exercise caution — the memecoin market is notoriously volatile and very much driven by sentiment and not by fundamentals. But the actions of some very intelligent participants on April 16 provide a rare, almost voyeuristic view into the next moves too many are making in an effort to try and front-run the next memecoin wave.

Despite the overlying presence of meme tokens and their attendant liquidity, there is market action that cannot be denied. A good case can be made that crypto is at a crossroads right now, with the meme-fueled section of the industry serving as much more than a bubble waiting to be burst. Still, it also must be said that action in this part of the market is as hard to call right now as it is to avoid any allure for getting involved.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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