Meme Coins Fall Over 10% After GameStop Stock Crash

Meme coins saw a notable decline alongside the GameStop stock market crash on June 7.

Although the decline was less than that of GameStop, major coins like Pepe, Dogewheat, Floki, and Bonk fell more than 10%.

The market’s unpredictability was evident as GameStop’s stock jumped 47% the day before in anticipation of a live broadcast from Keith Gill, known as “Roaring Kitty,” who had led GameStop’s rally.

However, the share price fell by up to 40% after the 50 Minutes broadcast, which brought no new information. The unpredictability also impacted meme coins, which had relied on the rally in meme stocks, leading to their downfall.

According to CoinMarketCap data on June 8, Dogecoin and Shiba Inu had fallen 7.56% and 6.23%, respectively. Pepe fell 10.82%, Dogewheat fell 12.47%, Floki fell 12.93% and Bonk fell 11.35%, all recording declines in the 10% range early on.

Prominent analyst Il Capo analyzed the situation as an “upheaval” amid an uptrend, noting a clear test of support for Solana, the underlying platform for major meme coins.

Not just coins; the entire crypto market is feeling the impact

The crypto market fell by $65 billion in less than a week. This market downturn led to a rotation of capital toward stablecoins or less risky bets, contributing to the decline of meme coins.

Social volume for these altcoins has also fallen by more than 20% in the past 24 hours, reflecting the negative sentiment alongside the price decline.

The resurgence of Gill (he returned to social networks after more than three years) has reignited enthusiasm and frequent halts in GME trading on traditional exchanges.

This in turn fueled a surge in coin activity amid a crypto bull market.

Gill’s GME portfolio is close to the billion dollar mark, triggering significant gains in GameStop-themed coins over the past 24 hours.

Here are the highlights:

• Solana-based coin Roaring Kitty (KITTY) soared nearly 300% to around $0.0344 on Friday.
• The based on Ethereum Roaring Kitten (ROAR) the coin surged over 126% during the same period, reaching around $0.00154.
• THE Solana-based GME (GME) The coin also saw a significant rally, rising over 115% to around $0.025.
• GME’s rally was accompanied by daily trading volume exceeding $357 million and a market capitalization of approximately $202 million.
• The Ethereum-based GME coin rose over 83% to trade at around $0.00006286.

The rapid rise of these parody meme pieces highlights the intense crypto FOMO (Fear Of Missing Out) that is sweeping the market. The meme coin industry has already reached a market capitalization of nearly $57.6 billion, with a daily trading volume exceeding $9 billion.

Meanwhile, the US SEC’s lack of action against Gill suggests the coin frenzy could spark a new alternate season. Furthermore, Bitcoin’s dominance appears to be reversing, as evidenced by significant gains in Ethereum (ETH) and BNB, indicating a potential shift in the market.

Amid these developments, popular digital artist Beeple, known for his record-breaking $69.3 million NFT sale, has sparked controversy with his latest artwork, “CURIOSITY KILLED THE CAT.”

See below.

Some see 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 work has been questioned, given Roaring Kitty’s influential role in mobilizing retail investors and shaping market dynamics.

There is increased concern about the potential impact of the provocative images on GameStop’s already volatile stock price. On the other hand, some experts suggest that the recent return of Roaring Kitty could signal an oncoming coin supercycle.

Fuente