Memecoins
Meme Coin Party begins after GameStop rally and adds $5 billion to index
GameStop Corp (NYSE: GME) is back in action once again, sparking a major frenzy on Wall Street. On Monday, May 13, GameStop (GME) price rallied a sharp 75% to $30.45, with the GME stock price pumping an additional 21% in aftermarket hours. Interestingly, the GameStop (GME) meme coin. has rallied a staggering 2200% in the last 24 hours. This also led to a strong rally in the meme coin sector.
GameStop Rally Triggers a 2021-Like Meme Coin Party
According to on-chain data provider Santiment, the memecoin market has witnessed an interesting start to the week, marked by notable breakouts and decouplings over the past 24 hours. Trading volumes among the top 50 assets in the meme coin sector increased by more than 34%. Furthermore, this sector alone added $5 billion to investors’ wealth in the last 24 hours. Dogecoin (DOGE) price increased by 10%
Coins such as $PEPE, $MAGA, $MOG, $BITCOIN, $PONKE, $PEPE2.0, $SPX and $ANALOS are now attracting significant interest, presenting potential opportunities for significant volatility. These developments highlight the dynamic nature of the memecoin market, prompting investors to keep an eye on these assets.
Courtesy: Most Holy
Short sellers’ losses exceed $1 billion
During the pandemic period of 2021, Reddit traders, led by Keith Gill, orchestrated a notable turnaround against hedge funds that had profited from short positions on what they perceived to be a struggling brick-and-mortar game store. This unexpected wave of support skyrocketed the price of GME by over 1,000% in less than a month.
Monday’s dramatic rise in GameStop’s stock price caused losses close to $1 billion to short sellers, data from S3 Partners reported.
With GameStop up 74%, hedge funds engaged in short selling faced a mark-to-market loss of $838 million in the brick-and-mortar video game retailer, according to data from S3 Partners.
The sharp rise in the stock price appeared to have been instigated by “Roaring Kitty,” who had previously rallied a legion of day traders to invest in gaming stocks in 2021, a historic event in the annals of Wall Street. Ihor Dusaniwsky, managing director of predictive analytics at S3, said: “Expect short covering on this stock as it already had a 100/100 squeeze score prior to today’s trading.”