The recent market turbulence affected major meme coins such as Pepe, Dogewheat, Floki, and Bonk, causing a drop of over 10%. GameStop’s stock surged by 47% in anticipation of a live broadcast by Keith Gill, also known as ‘Roaring Kitty,’ who was influential in the GameStop rally. However, the stock price plummeted by as much as 40% after the broadcast, which offered no new information. The unpredictability of the market also impacted meme coins, which had piggybacked on the meme stock rally, leading to their decline.
According to data from CoinMarketCap on June 8, Dogecoin and Shiba Inu fell by 7.56% and 6.23%, while Pepe, Dogewheat, Floki, and Bonk all recorded declines in the early 10% range. Analyst Il Capo characterized the situation as a “shakeout” within an uptrend, with a clear support test for Solana, the underlying platform of major meme coins. This market downturn led to a rotation of capital into stablecoins or less risky bets, contributing to the decline of meme coins. The social volume of these altcoins also dropped by more than 20% in the last 24 hours, reflecting the negative sentiment alongside the price decline.
Despite the downturn, there were notable standouts in the market. The Solana-based Roaring Kitty (KITTY) coin soared nearly 300%, accompanying GME’s rally, which had a daily trading volume exceeding $357 million and a market cap of around $202 million. Meanwhile, the Ethereum-based GME coin rose over 83% to trade at approximately $0.00006286. The meme coin industry has achieved a market cap of nearly $57.6 billion, with a daily trading volume surpassing $9 billion, highlighting the intense crypto FOMO sweeping the market.
The lack of action from the US SEC against Gill suggests that the meme coin frenzy could spark a new altseason. Renowned digital artist Beeple has stirred controversy with his latest artwork, “CURIOSITY KILLED THE CAT,” which some view as a commentary on the risks associated with the hype and speculation surrounding meme stocks and cryptocurrencies. The potential impact of the provocative imagery on GameStop’s already volatile stock price has sparked heightened concern.