Meme coins saw a notable decline alongside the GameStop stock collapse on June 7.
Although the decline was smaller than GameStop's, major coins like Pepe, Dogewheat, Floki, and Bonk fell more than 10%.
The unpredictability of the market was evident as GameStop stock had risen 47% the previous day in anticipation of a live broadcast by Keith Gill, known as “Roaring Kitty,” who led GameStop's rally.
However, the stock price fell by up to 40% after the 50-minute broadcast, which provided no new information. The unpredictability also affected meme coins, which took a back seat to the rise of meme stocks, sending them lower.
According to data from CoinMarketCap on June 8, Dogecoin and Shiba Inu fell by 7.56% and 6.23%, respectively. Baby was down 10.82%, DogHit was down 12.47%, Floki was down 12.93%, and Bonk was down 11.35%, all recording declines in the early 10% range.
Leading analyst Il Capo analyzed the situation as a “shakeout” amid an uptrend, pointing to a clear support test for Solana, the underlying platform for major meme coins.
Not just coins. The entire cryptocurrency market is feeling the impact
The cryptocurrency market has fallen by $65 billion in less than a week. This market downturn led to capital shifting to stablecoins or less risky bets, further contributing to the decline of memecoins.
The social volume of these altcoins has also fallen by more than 20% over the past 24 hours, reflecting negative sentiment combined with falling prices.
The re-emergence of Jill (who returned to social media after more than three years) has ignited excitement and halted frequent trading in GME trading on traditional exchanges.
This subsequently led to an increase in meme activity amid the cryptocurrency bull market.
Gill's GME portfolio is approaching the $1 billion mark, leading to significant gains in the GameStop-themed meme over the past 24 hours.
Here are the most notable ones:
- Solana-based Roaring Kitty (KITTY) coin, which was up nearly 300% to around $0.0344 by Friday.
- Ethereum-based coin Roaring Kitty (ROAR) jumped more than 126% in the same period, reaching about $0.00154.
- Solana-based token GME (GME) also saw a significant rally, increasing by more than 115% to around $0.025.
- GME's rise was accompanied by a daily trading volume exceeding $357 million and a market capitalization of approximately $202 million.
- Ethereum-based coin GME rose more than 83% to trade at around $0.00006286.
The rapid rise of these satirical meme coins highlights the intense crypto FOMO (fear of missing out) sweeping the market. The meme industry has already achieved a market capitalization of approximately US$57.6 billion, with a daily trading volume exceeding US$9 billion.
Meanwhile, the lack of action by the SEC against Gill suggests that the meme craze could usher in a fresh new season. Also, Bitcoin's dominance appears to be reversing, highlighted by big gains in Ethereum (ETH) and BNB, indicating a potential shift in the market.
Amidst these developments, popular digital artist Beeple, known for his record $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 artwork has been questioned, given the influential role Roaring Kitty plays in mobilizing retail investors and shaping market dynamics.
There is growing concern about the potential impact of the provocative images on GameStop's already volatile stock price. On the other hand, some experts suggest that Roaring Kitty's recent return may be just as well A sign of an upcoming super cycle for the meme coin.
