Meme Coin experienced a notable decline on June 7 along with GameStop’s stock price crash.
Although the decline was smaller than GameStop, major meme coins such as Pepe, Dogewheat, Floki, and Bonk fell by more than 10%.
The market’s unpredictability was clearly revealed, with GameStop’s stock price soaring 47% the day before in anticipation of the live broadcast of Keith Gill, known as ‘Roaring Kitty’, who led the GameStop rally.
However, after a 50-minute broadcast without much information, the stock price plummeted by 40%. Unpredictability also affected meme coins, which had been riding the meme stock rally, leading to their decline.
According to CoinMarketCap data on June 8, Dogecoin and Shiba Inu fell 7.56% and 6.23%, respectively. Pepe fell 10.82%, Dogehit 12.47%, Floki 12.93%, and Bonk 11.35%, all recording declines in the low 10% range.
Prominent analyst Il Capo analyzed the situation as a ‘breakout’ in the upward trend, citing a clear test of support for Solana, the underlying platform of the major meme coin.
It’s not just a meme coin. The entire cryptocurrency market feels the impact
The cryptocurrency market fell $65 billion in less than a week. This market downturn has resulted in capital being diverted to stablecoins or less risky bets, further contributing to the decline of meme coins.
Social trading volume for these altcoins has also plummeted by more than 20% in the past 24 hours, reflecting negative sentiment along with falling prices.
Gill’s resurgence (return to social media after over three years) has reignited excitement for GME trading on traditional exchanges and frequent trading outages.
This subsequently led to a surge in meme coin activity amid the boom in the cryptocurrency market.
Gill’s GME portfolio is nearing $1 billion, with significant gains from GameStop-themed meme coins over the past 24 hours.
Here’s what stands out:
- The Solana-based Roaring Kitty (KITTY) coin had surged nearly 300% by Friday, hitting around $0.0344.
- The Ethereum-based ROAR (Roaring Kitty) coin soared more than 126% during the same period, reaching approximately $0.00154.
- The Solana-based GME (GME) coin also saw significant gains, rising over 115% to around $0.025.
- GME’s rally resulted in daily trading volume exceeding $357 million and a market capitalization of approximately $202 million.
- The Ethereum-based GME coin rose more than 83% to trade at around $0.00006286.
The rapid rise of these parody meme coins highlights the intense cryptocurrency Fear Of Missing Out (FOMO) sweeping the markets. The memecoin industry has already achieved a market capitalization of approximately $57.6 billion, with daily trading volume exceeding $9 billion.
Meanwhile, the US SEC’s lack of action against Gill suggests that the meme coin craze could spark a new alt season. Additionally, Bitcoin’s dominance appears to be reversing, highlighted by significant gains in Ethereum (ETH) and BNB, indicating a potential shift in the market.
Meanwhile, digital artist Beeple, known for selling a record $69.3 million in NFTs, has sparked controversy with his latest work, “CURIOSITY KILLED THE CAT.”
See below.
Some see this as a commentary on the risks associated with the hype and speculation surrounding meme stocks and cryptocurrencies. Given Roaring Kitty’s influential role in mobilizing retail investors and shaping market dynamics, the timing and intentions behind Beeple’s work are open to question.
Concerns are growing about the impact the provocative image could have on GameStop’s already volatile stock price. On the other hand, some experts suggest that Roaring Kitty’s recent return could be a sign of an upcoming meme coin supercycle.