Meme Coins Drop More Than 10% After GameStop Stock Drop

Meme coins have seen a notable drop alongside GameStop stock's drop on June 7.

Although the drop was smaller than GameStop, major meme coins like Pepe, Dogewheat, Floki, and Bonk fell more than 10%.

The unpredictability of the market 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 the GameStop rally.

However, the stock price plummeted as much as 40% after the 50-minute broadcast, which did not offer any new information. The unpredictability also affected meme coins, which had taken advantage of the rally in meme stocks, causing them to fall.

According to data from CoinMarketCap on June 8, Dogecoin and Shiba Inu had fallen by 7.56% and 6.23%, respectively. Pepe fell 10.82%, Dogewheat 12.47%, Floki 12.93% and Bonk 11.35%, all recording drops in the initial 10% range.

Prominent analyst Il Capo analyzed the situation as a “reshuffle” amid an uptrend, pointing to a clear test of support for Solana, the underlying platform of major meme coins.

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Not just meme coins; The entire crypto market feels the impact.

The cryptocurrency market is down $65 billion in less than a week. This market crash caused a rotation of capital towards stablecoins or less risky bets, which further contributed to the decline of meme coins.

The social volume of these altcoins also plummeted more than 20% in the last 24 hours, reflecting the negative sentiment along with the falling prices.

Gill's resurgence (he returned to social media after more than three years) reignited enthusiasm and frequent halts in GME trading on traditional exchanges.

This subsequently fueled a surge in meme coin activity amid a bullish crypto market.

Gill's GME portfolio is approaching the $1 billion mark, which has sparked significant gains in GameStop-themed meme coins over the past 24 hours.

Here are the highlights:

• Solana-based Roaring Kitty (KITTY) coin, which soared nearly 300% to approximately $0.0344 on Friday.
• The ethereum-based Roaring Kitty coin (ROAR) jumped over 126% in the same period, reaching around $0.00154.
• The Solana-based GME coin (GME) also saw a significant rally, rising over 115% to approximately $0.025.
• The GME rally was accompanied by a daily trading volume of over $357 million and a market capitalization of around $202 million.
• The ethereum-based GME coin rose over 83% to trade at approximately $0.00006286.

The rapid rise of these parody meme coins highlights the intense crypto FOMO (Fear Of Missing Out) 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 the meme coin frenzy could spark a new alternate season. Additionally, bitcoin's dominance appears to be reversing, highlighted by significant gains in ethereum (eth) and BNB, indicating a potential turnaround in the market.

Amid these developments, renowned digital artist Beeple, known for his record-breaking $69.3 million nft sale, has sparked controversy with his latest artwork, “CURIOSITY KILLED THE CAT.”

See below.

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Some see it as a commentary on the risks associated with the hype and speculation around meme stocks and cryptocurrencies. The timing and intent behind Beeple's artwork has been questioned, given Roaring Kitty's influential role in mobilizing retail investors and shaping market dynamics.

There is greater concern about the potential impact of the provocative images on GameStop's already volatile stock price. On the other hand, some experts suggest that the recent return of Roaring Kitty could x.com/degenharambe/status/1789846198855340038″ target=”_blank” rel=””>point out an approaching meme currency supercycle.