GameStop stock slump pushes down meme coins: DOG, MAGA, BONK, and others
The price drop of GameStop stock (NYSE:GME) has significantly affected meme coins, causing price declines across the board.
Despite being a well-known American retailer of video games, consumer electronics, and gaming merchandise, GameStop Corp. is included in the meme stocks, which explains why its price fluctuations are correlated with those of meme coins.
AMC Entertainment Holdings (NYSE:AMC), the well-known meme stock, was up 3.61% on June 11 at 10:34 GMT-4 compared to GameStop (GME) stock, which was down 1.13% at the same time.
GameStop stock drops post-Roaring Kitty craze
GameStop (GME) stock saw a sharp increase in price on June 7, reaching a high of $61.27 thanks to a Reddit post by Keith Gill, also known as Roaring Kitty, which revealed a $116 million bet on the stock. Investor excitement over Roaring Kitty’s investment revelation rekindled interest in GameStop stock.
The anticipation was short-lived, though, as GameStop revealed intentions to sell up to 120 million shares, diluting the value of already-issued shares and undermining investor confidence. The corporate action caused a carnage, as the meme stock fell to $23.30 from its peak on June 7th, a 61.97% decline.
The GameStop stock price decline has not affected meme stocks, but meme coins have been severely impacted and appear to be suffering the most.
DOG, MAGA, and BONK leads the coin market decline
The entire meme coin market was significantly impacted by GameStop’s stock price decline. To begin with, Coinmarketcap data shows that during the previous day, the total market capitalization of the most popular meme tokens decreased by roughly 3.6%.
Furthermore, a large number of the most popular meme coins have experienced notable price declines, with MAGA leading the way with a drop of more than 45% over the past week and more than 15% in the last day.
Other stocks, such as Dog (Runes), have experienced a spectacular rally since their launch, but they have now fallen by more than 33% over the last week and more than 13% in the last day. Over the last week, dogwifhat (WIF) has dropped by over 22%, while bonk (BONK) has dropped by over 12%.
One of the most well-known meme coins, Dogecoin (DOGE), saw a 4.01% 24-hour decline, dropping to $0.1389 in value. Comparably, the price of Shiba Inu (SHIB) dropped by 4.89% in a single day, to $0.00002195.
MEMECOIN (MEME), BOOK OF MEME (BOME), MAGA (TRUMP), Pepe (PEPE), Maneki (MANEKI), Sonic The Goat (GOAT), and other meme coins have all experienced notable price declines.
That being said, given that the global cryptocurrency market capitalization has dropped by 3.87% to $2.44 trillion in the past day, today’s market decline is not limited to meme coins. Consequently, meme coin holders can take a deep breath and continue to observe the market to see how it will react in the future.
Market Recovery – When Can We Expect a Rebound?
Determining precise timelines for meme coin market recoveries can be challenging given the intricate interplay of influences shaping the crypto market landscape. These factors include regulatory developments, groundbreaking technological innovations, and significant global economic events.
In order to navigate the intricacies of the meme coin market effectively, investors must stay up-to-date with the latest news, trends, and developments that could potentially impact their investments positively or negatively.
This dynamic market is influenced by various factors, including social media sentiment, regulatory changes, and technological innovations. By staying informed and prepared, investors can capitalize on potential opportunities while minimizing risks.
