Meme coins drop more than 10% following GameStop stock plunge

Meme coins suffered a notable decline alongside GameStop’s stock crash on June 7.

While the decline was smaller than that of GameStop, major meme coins such as Pepe, Dogewheat, Floki, and Bonk fell by more than 10%.

The market’s unpredictability was evident when GameStop shares surged 47% the previous day in anticipation of a live broadcast by Keith Gill, known as “Roaring Kitty,” who had led GameStop’s rally.

However, the share price plummeted by up to 40% after the 50-minute broadcast, providing no new information. The unpredictability also impacted meme coins, which had been leaning on the rally in meme stocks, leading to their collapse.

According to data from CoinMarketCap, Dogecoin and Shiba Inu had fallen by 7.56% and 6.23% respectively on June 8th. Pepe fell 10.82%, Dogewheat 12.47%, Floki 12.93% and Bonk 11.35%, all with declines around 10%.

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

Not just meme coins; the entire cryptocurrency market feels the impact

The cryptocurrency market plunged by $65 billion in less than a week. This market downturn has led to a rotation of capital towards stablecoins or less risky bets, further contributing to the decline of meme coins.

The social volume of these altcoins has also collapsed by more than 20% in the last 24 hours, reflecting the negative sentiment along with the price decline.

The rebirth of Gill (he returned to social media after more than three years) have reignited the excitement and frequent interruptions of GME trading on traditional exchanges.

This subsequently fueled a surge in meme coin activity amid a bull cryptocurrency market.

Gill’s GME portfolio is approaching the billion dollar mark, generating significant gains in GameStop-themed meme coins over the past 24 hours.

Here are the highlights:

• Solana-based Roaring Kitty (KITTY) coin, which surged nearly 300% to around $0.0344 on Friday.
• The one based on Ethereum Roaring kitten (ROAR) Over the same period, the coin jumped more than 126%, reaching around $0.00154.
• THE Solana-based GME (GME) The coin also rallied significantly, rising more than 115% to around $0.025.
• GME’s rally was accompanied by daily trading volume in excess of $357 million and a market capitalization of approximately $202 million.
• The Ethereum-based GME coin surged more than 83% to trade at around $0.00006286.

The rapid rise of these parody meme coins highlights the intense cryptocurrency 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 daily trading volume exceeding $9 billion.

Meanwhile, the US SEC’s lack of action against Gill suggests that the meme coin frenzy could spark a new altseason. Additionally, Bitcoin’s dominance appears to have reversed, highlighted 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 NFT sales of $69.3 million, has stirred controversy with his latest artwork, “CURIOSITY KILLED THE CAT.”

Look down.

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 have been called into question, given Roaring Kitty’s influential role in mobilizing retail investors and shaping market dynamics.

There is heightened 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 might do just that they signal a supercycle of meme coins to come.

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