Meme Coin Season Begins as GameStop Skyrockets, Adding $5 Billion to Index
The meme coin sector went abuzz shortly after Wall Street's GameStop rally. Daily trading volume in the meme coin market surged 34%, adding $5 billion in gains across investor portfolios.
On Monday, May 13, GameStop's (GME) price spiked by 75%, hitting $30.45, with the stock price surging 21% in after-hours trading. This remarkable surge has triggered a bullish recovery for meme coins this week.
GameStop Rally Ignites Meme Coin Market FrenzyKeith Grill, a famous investor and financial analyst known for his GameStop analysis, which resulted in substantial gains, might be connected to the ongoing frenzy. His analysis, posted under the username Roaring Kitty, drove the 2021 GameStop short squeeze that triggered a massive frenzy for retail stocks.
Grill's May 13 X post, featuring a simple meme showing a moment of concentration, was interpreted as a sign to concentrate on trading. This excited market participants, triggering a dramatic surge in GME stock.
- Roaring Kitty (@TheRoaringKitty) May 13, 2024
Shortly after the GME stock rally, the meme coin GameStop (GME) soared, sending a ripple effect across the meme coin market this week. Santiment data revealed that GME surged over 1300% on May 13. RoaringKitty (ROAR), another meme coin, recorded a 4,100% in just 24 hours.
#KeithGill, also known as #RoaringKitty, made his return on Sunday after being known as the face of the 2021 #GameStop breakout.#Gamestop's +74% surge has caused #crypto traders to take part in massive #memecoin pumps Monday.
Although $MEME comes up in the @santimentfeed... pic.twitter.com/5TPtDlJXTD
- Santiment (@santimentfeed) May 13, 2024
The rally has continued today, with GME tokens surging 350% in the past 24 hours, with a 2,880% price increase in the past month. Trade volumes across the top 50 meme coins rallied over 34%, with Dogecoin gaining 10% on its price. This significant boost added $5 billion in profit for investors.
Interestingly, the rally also rubbed off on coins like PEPE, MAGA, MOG, and SPX. In the last 24 hours, PEPE has recorded an over 26% gain, Mog Coin (MOG) gained over 27%, and MAGA gained more than 9%.
While GameStop surged by 74%, hedge funds in short trades faced losses of approximately $838 million. Monday's massive price surge resulted in losses close to $1 billion for traders in short positions.
PEPE Hits New All-Time High As Meme Coins RallyThe positive market sentiment for meme coins propelled PEPE to a new all-time high of $0.00001094 today, May 14. Pepe's recent rally can also be attributed to the rising interest in the coin among Smart Money Traders.
On-chain data revealed that these smart money addresses moved nearly 250.5 billion PEPE tokens during the bullish phase.
Data from the analytical platform Lookonchain reveals that a mart money address withdrew 406.74 million PEPE tokens from Binance on May 13. This trader had previously made $3.72 million of the PEPE tokens.
Meanwhile, as of 6:14 a.m. EST, PEPE trades at $0.00001064, with a 19.9% increase in the past 24 hours. It traded at a 24-hour low of $0.00000831 and a high of $0.00001028, deleting one zero from its price.
While this marks a remarkable achievement for PEPE, there are concerns about whether it can maintain its new high.
Currently, the buying pressure on PEPE is massive, with its 24-hour trading volume rising by 280.38% to $2.11 billion. In addition, data from Coinglass reveals that the open interest for PEPE has increased by 14.92% to $107.51 million.
PEPE derivatives volume has increased by 235.45% to $2.12 billion, indicating high investor optimism. However, the asset is already in the overbought zone and will likely retrace to a period of consolidation in the coming days.
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