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30 May 2024
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Meme Coin Party Begins After GameStop Rally, Adds $5 Billion To Index

GameStop Corp (NYSE: GME) is back in action once again leading to a strong frenzy on Wall Street. On Monday, May 13, the GameStop (GME) price rallied by a strong 75% shooting all the way to $30.45, with the GME stock price pumping an additional 21% in the aftermarket hours. Interestingly, the GameStop (GME) meme coin has rallied by a staggering 2200% in the last 24 hours. This has also led to a strong rally across the meme coin sector.

GameStop Rally Triggers 2021-Like Meme Coin Party

According to on-chain data provider Santiment, the memecoin market witnessed an attention-grabbing kickoff to the week, marked by notable breakouts and decouplings within the past 24 hours. Trading volumes among the top 50 assets in the meme coin sector surged by over 34%. Furthermore, this sector alone has added $5 billion to investors’ wealth in the last 24 hours. The dogecoin (DOGE) price has surged 10%

Coins like $PEPE, $MAGA, $MOG, $BITCOIN, $PONKE, $PEPE2.0, $SPX, and $ANALOS are now attracting considerable interest, presenting potential opportunities for significant volatility. These developments highlight the dynamic nature of the memecoin market, prompting investors to keep a close watch on these assets.

Courtesy: Santiment

Short Seller Losses Cross $1 Billion

During the 2021 pandemic period, Reddit traders, led by Keith Gill, orchestrated a remarkable turnaround against hedge funds that had been profiting from short positions on what they perceived to be a struggling brick-and-mortar game store. This unexpected surge of support sent the price of GME skyrocketing by over 1,000% in less than a month.

Monday’s astounding surge in GameStop’s stock price inflicted losses nearing $1 billion on short sellers, as reported by data from S3 Partners.

As GameStop surged by 74%, hedge funds engaged in short selling faced a mark-to-market loss totaling $838 million in the brick-and-mortar video game retailer, according to data from S3 Partners.

The abrupt uptick in the stock price appeared to be instigated by “Roaring Kitty,” who previously rallied a legion of day traders to invest in the gaming stock in 2021, a historic event in Wall Street’s annals. Ihor Dusaniwsky, S3 managing director of predictive analytics said: “Expect short covering in this stock as it already had a 100/100 squeeze score prior to today’s trading”.

The post Meme Coin Party Begins After GameStop Rally, Adds $5 Billion To Index appeared first on CoinGape.

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