The recent decline in meme coins, such as Pepe, Dogewheat, Floki, and Bonk, coincided with GameStop’s stock crash on June 7. While the drop in meme coins was not as significant as GameStop’s, major meme coins experienced declines of over 10%. This volatility in the market followed GameStop’s stock surge of 47% the day before, fueled by anticipation of a live broadcast by Keith Gill, also known as ‘Roaring Kitty,’ who played a key role in the GameStop rally. However, the stock price plummeted by as much as 40% after the broadcast, which did not provide any new information. This unpredictability also impacted meme coins, which had seen a rise in tandem with the meme stock rally.
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%, displaying declines in the early 10% range. Analyst Il Capo characterized the situation as a “shakeout” amid an uptrend, emphasizing the importance of Solana, the platform underlying major meme coins. The overall crypto market downturn led to a rotation of capital into stablecoins or less risky bets, resulting in a decline in meme coins alongside the whole market.
Gill’s resurgence and increased trading activity in GameStop trading on traditional exchanges sparked excitement and frequent trading halts. This surge in meme coin activity coincided with the bullish sentiment in the crypto market. Gill’s GME portfolio nearing the $1 billion mark led to significant gains in GameStop-themed meme coins over the past 24 hours. Standouts included the Solana-based Roaring Kitty (KITTY) coin, which rose nearly 300%, and the Ethereum-based Roaring Kitty (ROAR) coin, which jumped over 126%. The meme coin industry has achieved a market cap of nearly $57.6 billion, with a daily trading volume exceeding $9 billion.
The lack of action from the US SEC against Gill suggests that the meme coin frenzy could trigger a new altseason. Bitcoin’s dominance in the market appears to be reversing, with notable gains in Ethereum (ETH) and BNB, indicating a potential market shift. Meanwhile, digital artist Beeple’s latest artwork, “CURIOSITY KILLED THE CAT,” has sparked controversy, with some viewing it as a commentary on the risks associated with the hype and speculation around meme stocks and cryptocurrencies. The timing and intent of Beeple’s artwork, particularly in relation to Roaring Kitty’s influence on retail investors and market dynamics, have been scrutinized.
Questions have been raised about the potential impact of the provocative imagery on GameStop’s volatile stock price. On the other hand, some experts speculate that Roaring Kitty’s return could signal a forthcoming meme coin supercycle. The intense crypto FOMO in the market is evident through the rapid rise of parody meme coins like Roaring Kitty and GME, with substantial increases in trading volume and market cap. The continued uncertainty and volatility in the market highlight the importance of closely monitoring the developments in meme coins and the broader crypto landscape to make informed investment decisions.
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