The current GameStop (GME) mania has affected the market for cryptocurrencies, particularly in the meme coin space. All meme currencies saw a robust rally as the US CPI figures met market expectations, particularly the leading players like PEPE.
Robust meme coin party Among the GameStop Madness
According to on-chain data source Santiment, the memecoin sector in the crypto market has surpassed all others in Q2. Significant increases have been seen in assets like $PEPE (+100%), $PONKE (+96%), $MAGA (+80%), and $TURBO (+78%). Memes’ trade volume has increased by 136% in just the last week.
The PEPE Coin reached a new all-time high earlier this week and has been one of the most outperforming altcoins in the meme coin market.
📈 The #memecoin sector has been surging above all others in #crypto in Q2. Assets like $PEPE (+100%), $PONKE (+96%), $MAGA (+80%), $TURBO (+78%), and $BITCOIN (+76%) have been major beneficiaries. This past week, #meme assets are +136% in volume.
Link: https://t.co/dMj8Jf4q0P pic.twitter.com/50VPgIjyag
— Santiment (@santimentfeed) May 15, 2024
More intriguingly, in the last two days, there has been a 4,000% increase in the GameStop (GME) meme coin based on the Solana blockchain. It should be noted that this meme coin is unrelated to GameStop, whose stock has gained 200% over the past three trading days. As a result, when trading the $GME meme coin, investors need to use greater caution. The price of the $GME meme coin has decreased by almost 50% in the past day.
Warning Signs for Investors
Sentiment, an on-chain data provider, stated that the hype surrounding AMC and Gamestop had significantly impacted the cryptocurrency space because of their similar speculative tendencies. These two businesses are at the forefront of Bitcoin platform conversations. These surges frequently signal market direction changes, providing opportunities for shrewd traders to profit from.
Nevertheless, investors risk losing much money on FOMO wagers. According to on-chain data provider Lookonchain, three of these traders lost thousands of dollars when they engaged in FOMO trading.
Not everyone made money on $GME.
These 3 guys lost tens of thousands of dollars by buying $GME with #FOMO and panic selling after the price dropped!
Remember, please don’t buy with #FOMO when prices are skyrocketing, and don’t panic sell when prices are falling!… pic.twitter.com/4ZlPEAy1Cc
— Lookonchain (@lookonchain) May 15, 2024
After a significant increase in value earlier this year, some market professionals are still deciding about meme currencies. “Let me be 100% clear where I stand here. Major memes like $DOGE, $PEPE, and $WIF are forming or have already formed multi-month distribution tops. They will see significant drawdown before their next major legs to the upside,” writes well-known crypto analyst CrediBULL Crypto.
