Degens was ‘tired’ of GameStop memecoins – traders
Due to the general weakness in the market, along with the increase in Gamestop's share price, the price of unofficial GameStop memecoins has increased, according to several crypto traders.
“People are desperate and they're taking any little sign of hope they can,” pseudonymous crypto trader Daan CryptoTrades told Cointelegraph.
“The excitement around GameStop memecoins shows that there is unallocated capital out there,” Ed Hindy, chief investment officer at Tyr Capital, told Cointelegraph.
Solana-based memecoin GameStop (GME) – which has no connection with the company – has grown by 2,727% in the past two days, with GameStop's stock price increasing by 204.50% in the same period, according to data from CoinMarketCap and Google Finance. .
Famed GameStop stockbroker Keith Gill came after his “Roaring Kitty” X label posted on May 12 for the first time in three years.
On June 19, 2021, Gill went dark on social media, but posted a cryptic sign on his couch to announce his return after a long hiatus.
Meanwhile, among the top 100 cryptocurrencies, PEPE (PEPE) and FLOKI (FLOKI) were the only tokens to maintain high gains in the same timeframe, rising by 35.73% and 11.27% respectively.
Dogecoin (DOGE) and Shiba Inu (SHIBA) rallied on May 12 but returned 1.76% and 1.39% over the past 24 hours.
This suggests that traders are chasing specific short-term narratives rather than having full faith in the overall market.
“Investors are overreacting to short-term trends like the GameStop incident because the market is currently quiet. We need a new narrative in the crypto markets,” Hindy said.
Alongside this, overall market sentiment has declined over the past 30 days, with the Crypto Fear and Greed Index falling 10 points since May 15 at 64 “Greed” points.
Related: Bitcoin traders expect Fed Chair Powell to ‘load our wallets' and BTC to target $80K+.
Daan believes that GameStop's rise in the stock market has convinced crypto traders that the corresponding memecoins in the crypto market will follow suit.
“If the price is high and people don't know why, why would they think of narratives to support and explain it,” Diane explained, adding that the 2021 GameStop “saga is still on a lot of people's minds.”
“I don't think a price hike should happen. I have always believed that value precedes narrative. So projects can have great fundamentals, but if prices don't move, people don't care,” he added.
On the contrary, Patrick Scott, founder of Dynamo Diffie, believes that there is “no shortage of narratives” in the crypto market.
“Tokenized real-world assets have grown from practically nothing to billions of dollars in the last few years,” Cointelegraph said, pointing to current trends in Solana and decentralized physical infrastructure networks (DePINs):
“Solana's on-chain activity now rivals Ethereum's, and DePINs bring unprecedented revenue to crypto.”
Magazine: What do crypto market makers do? Liquidity, or fraud
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
