Coinspeaker
Will GameStop Pump Trigger Crypto Market Rally Similar to 2021? Is Meme Coin Mania Back?
Three years after GameStop Corp (NYSE: GME) stock stormed Wall Street, the stock is back in action once again. On Monday, May 13, GameStop stock rallied by a staggering 75% in a single day closing the day at $30.45. Interestingly, the GME stock has rallied by an additional 21% in the aftermarket hours trading.
This surge on Wall Street led to an even stronger rally in the Solana-based meme coin GameStop ($GME). In the last 36 hours, the GameStop meme coin price has surged by a staggering 1800%, leading to a strong rally across the meme coin sector.
These developments have led everyone to think about whether we are going to see a GameStop 2.0 rally soon. Keith Gill, often lauded as the catalyst behind the 2021 GameStop short squeeze, vanished from social media on June 19, 2021.
However, after an almost three-year absence, he resurfaced on May 13, sharing a cryptic meme featuring a gamer sitting up in their chair to signify his return. Within 24 hours of Gill’s reappearance on X, GameStop shares surged by up to 111%. Roaring Kitty ($ROAR), the cryptocurrency devised after Keith Gill, also saw a 4,100% rally in the last 24 hours.
This massive rally in the GameStop stock on Monday led to over $1 billion in losses for short sellers, as per data from S3 Partners. They further noted that the 74% rally in the GME stock led to a mark-to-market loss of $838 million for the short-selling hedge funds. Ihor Dusaniwsky, S3 managing director of predictive analytics, told CNBC:
“Expect short covering in this stock as it already had a 100/100 squeeze score prior to today’s trading.”
Meme Coin Party KickStarts
Several market analysts believe that GameStop short squeeze served as a catalyst for a massive surge across the entire meme coin sector. The top two meme coins – Dogecoin (DOGE) and Shiba Inu (SHIB) – rallied by 10% in the last 24 hours. Other meme coins have delivered even higher gains.
The GameStop surge by 74% on Monday spurred a significant uptick in meme coin activity, attracting attention from crypto traders. Memecoins experienced a notable start to the week, witnessing breakouts and decouplings across the board over the past 24 hours.
Trading volumes for the top 50 assets in this category surged by more than 34%. Coins such as $PEPE, $MAGA, $MOG, $BITCOIN, $PONKE, $PEPE2.0, $SPX, and $ANALOS are worth monitoring for potential volatility opportunities, reports Santiment.
However, some market analysts note that we’re still not near the 2021-like frenzy in GameStop. eToro market analyst Josh Gilbert said that the current outstanding shorts in GameStop are much smaller in comparison to that seen during 2021. Thus, the move to the upside would also be smaller.
“The environment is just not comparable to 2021, when interest rates were at rock bottom, governments were providing fiscal stimulus globally, and major economies had little to no inflation,” he said.
Will GameStop Pump Trigger Crypto Market Rally Similar to 2021? Is Meme Coin Mania Back?
