Meme coins have seen a significant decline following GameStop’s stock crash on June 7. Major meme coins like Pepe, Dogewheat, Floki, and Bonk fell by over 10%, although their drop was smaller compared to GameStop’s.

The market’s unpredictability was highlighted as GameStop’s stock surged 47% the previous day due to a live broadcast by Keith Gill, known as ‘Roaring Kitty,’ who had led the GameStop rally. However, the stock price fell by as much as 40% after the 50-minute broadcast, which provided no new information. This unpredictability also impacted meme coins, which had followed the meme stock rally, leading to their drop.

According to data from CoinMarketCap on June 8, Dogecoin and Shiba Inu fell 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.

“Strong sell-off into support. Alts suffered more, but it looks like a shakeout tbh. If these support levels hold, we should see bullish continuation soon.”

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.

Entire Crypto Market Feels the Impact

The crypto market is down by $65 billion in less than a week. This 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 negative sentiment alongside the price decline.

Keith Gill’s return to social media after more than three years reignited excitement and frequent trading halts in GME trading on traditional exchanges. This surge in activity also fueled 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 soared nearly 300% to approximately $0.0344 by Friday.
  • The Ethereum-based Roaring Kitty (ROAR) coin jumped over 126%, reaching around $0.00154.
  • The Solana-based GME (GME) coin experienced a significant rally, increasing more than 115% to about $0.025.
  • The Ethereum-based GME coin rose over 83% to trade at approximately $0.00006286.

GME’s rally was accompanied by a daily trading volume exceeding $357 million and a market cap of around $202 million. 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.

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.” 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.

Stay updated with the latest cryptocurrency and finance news on Global Crypto News.

Post Views: 8