Meme coins drop over 10% following GameStop’s stock crash
Meme coins have experienced a notable decline alongside GameStop’s stock crash on June 7.
Although the drop was smaller than GameStop’s, major meme coins like Pepe, Dogewheat, Floki, and Bonk fell by over 10%.
The unpredictability of the market was evident as GameStop’s stock surged 47% the previous day in anticipation of a live broadcast by Keith Gill, known as ‘Roaring Kitty,’ who had led the GameStop rally.
However, the stock price plummeted by as much as 40% after the 50-minute broadcast, which offered no new information. The unpredictability also impacted meme coins, which had piggybacked on the meme stock rally, leading to their drop.
According to data from CoinMarketCap on June 8, Dogecoin and Shiba Inu had fallen by 7.56% and 6.23%, respectively. Pepe dropped 10.82%, Dogewheat 12.47%, Floki 12.93%, and Bonk 11.35%, all recording declines in the early 10% range.
Prominent analyst Il Capo analyzed the situation as a “shakeout” amid an uptrend, noting a clear support test for Solana, the underlying platform of major meme coins.
Not just meme coins; entire crypto market feels the impact
The crypto market is down by $65 billion in less than a week. This market downturn led to a rotation of capital into stablecoins or less risky bets, further contributing to the decline of meme coins.
The social volume of these altcoins also plummeted by more than 20% in the last 24 hours, reflecting the negative sentiment alongside the price decline.
Gill’s resurgence (he returned to social media after more than three years) reignited excitement and frequent trading halts in GME trading on traditional exchanges.
This subsequently fueled a surge in meme coin activity amid a bullish crypto market.
Gill’s GME portfolio is nearing the $1 billion mark, sparking significant gains in GameStop-themed meme coins over the past 24 hours.
Here are the standouts:
- The Solana-based Roaring Kitty (KITTY) coin, which soared nearly 300% to approximately $0.0344 by Friday.
- The Ethereum-based Roaring Kitty (ROAR) coin jumped over 126% in the same period, reaching around $0.00154.
- The Solana-based GME (GME) coin also experienced a significant rally, increasing more than 115% to about $0.025.
- GME’s rally was accompanied by a daily trading volume exceeding $357 million and a market cap of around $202 million.
- The Ethereum-based GME coin rose over 83% to trade at approximately $0.00006286.
The rapid rise of these parody meme coins highlights the intense crypto FOMO (Fear Of Missing Out) sweeping the market. The meme coin industry has already achieved a market cap of nearly $57.6 billion, with a daily trading volume surpassing $9 billion.
Meanwhile, the lack of action from the US SEC against Gill suggests that the meme coin frenzy could spark a new altseason. Also, Bitcoin’s dominance appears to be reversing, highlighted by significant gains in Ethereum (ETH) and BNB, indicating a potential shift in the market.
In the midst of these developments, renowned digital artist Beeple, known for his record-breaking $69.3 million NFT sale, has stirred controversy with his latest artwork, “CURIOSITY KILLED THE CAT.”
See below.
Some view it as a commentary on the risks associated with the hype and speculation surrounding meme stocks and cryptocurrencies. The timing and intent behind Beeple’s artwork have been questioned, given Roaring Kitty’s influential role in mobilizing retail investors and shaping market dynamics.
There’s heightened concern about the potential impact of the provocative imagery on GameStop’s already volatile stock price. On the other hand, some experts suggest that Roaring Kitty’s recent return could signal an oncoming meme coin supercycle.
