Peter Smith
The GameStop ($GME) frenzy extends into the crypto market, particularly impacting meme coins like $PEPE and $GME. Caution is advised amidst volatile trading trends.
Strong Meme Coin Party Amid GameStop Frenzy
In the second quarter, meme coins have outpaced all other sectors in the crypto market, according to on-chain data from Santiment. Assets such as $PEPE (+100%), $PONKE (+96%), $MAGA (+80%), $TURBO (+78%), and even $BITCOIN (+76%) have experienced significant surges. Over the past week alone, meme assets have seen a staggering 136% increase in trading volume.
$GME Meme Coin: A Wild Ride
The GameStop ($GME) meme coin, built on the Solana blockchain, witnessed a jaw-dropping 4,000% rally in the past two days. It's crucial to note that this meme coin is unrelated to the GameStop company, whose stock has surged by 200% in the last three trading sessions. However, caution is warranted as the $GME meme coin's price plummeted nearly 50% in the last 24 hours.
Santiment's on-chain data highlights how the GameStop and AMC frenzy has spilled over into the crypto realm, driven by shared speculative behavior. These discussions dominate cryptocurrency platforms and often signal shifts in market direction. While there are opportunities for savvy traders, reckless FOMO-based bets have already cost some investors thousands of dollars, as reported by Lookonchain.
Expert Caution on Meme Coins
Despite the strong rally, some market analysts express skepticism towards meme coins. CrediBULL Crypto warns of potential multi-month distribution tops forming in major memes like $DOGE, $PEPE, and $WIF. They anticipate significant drawdowns before any substantial upside movements.
In conclusion, while the GameStop frenzy has injected excitement into the crypto meme coin market, investors should tread cautiously, considering the volatility and speculative nature of these assets.
Peter Smith
