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GameStop Frenzy Reignites "Stocks Meta" in Crypto

Bitcoin briefly surpassed the $70,000 mark yesterday, seemingly drawing strength from the excitement surrounding GameStop. However, the most dramatic movements have occurred in the memecoin space.

 Image: Special meme fresh/Facebook

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The resurfacing of Reddit investor legend Roaring Kitty, real name Keith Gill, is sending shockwaves through both the traditional stock market and the cryptocurrency space.

Since a cryptic post two weeks ago hinting at a return to the GameStop (GME) fray, GME's stock has skyrocketed, fueled by a $200 million long position revealed by Gill.

Gill's GME positions

On Monday, GME stock grew by almost 75% from the market open, paring losses throughout the session before closing at $28. It's now trading at $30.36 after-hours.

This surge has had a ripple effect, impacting Bitcoin, altcoins, and even memecoins. During the original GameStop saga in 2021, a memecoin based on GME (no relation to the company) skyrocketed alongside the stock price, fueled by retail investor enthusiasm on platforms like Reddit. Now, with Gill's return and renewed interest in GME, this "stocks meta" appears to be back in play.

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The GameStop memecoin, built on the Solana blockchain, saw a 300% rally yesterday, following the massive pump in May that brought 3,000% returns for holders. This price jump wasn't limited to the memecoin, with Solana-based tokens experiencing significant growth as well. The volatility surrounding GME even led to trading halts to manage the rapid price fluctuations.

GME token (Data: Coinmarketcap)

This sudden shift in investor focus has had a mixed impact on other areas of the crypto market. With resources flowing towards the "stocks meta," memecoins based on internet trends like "cats" and "dogs" have seen a decline in value. Only established memecoins with strong communities, such as DOGE, Michi and WIF, managed to weather the storm relatively unscathed.

The return of Roaring Kitty has undoubtedly injected massive volumes and liquidity into the GameStop memecoin market. But as we've seen in the past, only memecoins with dedicated communities will weather the turbulence. For the memecoins that relied solely on the previous hype cycle, the future looks less certain. The coming weeks will be crucial in determining the long-term impact of the "stocks meta" revival.

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