GameStop-Themed Cyptocurrency Tokens Track Company's Stock Leap Amid Market Slowdown
Summary:
The value of GameStop-themed digital tokens has notably increased, matching the rise in GameStop's stock price due to a generally lethargic market, according to several crypto traders. The Solana-based GameStop memecoin surged by 2,727% in two days, parallel to a 204.50% increase in GameStop's stock value in the same period, according to CoinMarketCap and Google Finance. This trend was attributed to bored investors seeking new investment opportunities, and it indicates a lack of overall confidence in the entire market. The industry needs a fresh narrative, experts suggest. Investment and trading endeavors always present a risk, hence independent research is advised.
The value of informal GameStop-themed digital tokens has surged, tracking the rise in GameStop's (GME) share value, as per several cryptocurrency traders. They attributed this trend to a general market lull. Crypto trader Daan Crypto Trades, going by a pseudonym, told Cointelegraph that people are clinging to any trace of optimism they can find. Chief Investment Officer of Tyr Capital, Ed Hindi, mentioned the buzz surrounding GameStop-themed digital coins indicating surplus capital hunting for investment avenues. The Solana-based GameStop (GME) memecoin, not linked to the actual corporation, marked a huge growth of 2,727% in just two days, running parallel to a 204.50% surge in GameStop's stock price over the same duration, according to CoinMarketCap and Google Finance reports. GME showed a single-day growth of 65.68%.
On May 12, after a near three-year break, renowned GameStop stock trader Keith Gill made a post from his account "Roaring Kitty" X, celebrating his much-anticipated social media comeback with a cryptic meme. He had vanished from social media on June 19, 2021, marking his return with an image of a gamer sitting upright in a chair. Amid the top 100 cryptos, only PEPE (PEPE) and Floki (FLOKI) managed to maintain significant growth during the same period, with increases of 35.73% and 11.27% respectively. DOGE (DOGE) and Shiba Inu (SHIBA) saw hikes on May 12, but have since dropped by 1.76% and 1.39% in the past 24 hours. Such trends indicate that traders are more attracted to short-term market narratives than they are confident in the market as a whole. Crypto market dealers are overreacting to instantaneous trends like the GameStop incident, particularly during this quiet phase, highlighted Hindi, who also stressed the need for a fresh market narrative.
The Fear and Greed Index signals a drop in overall market sentiment over the previous 30 days, down about 10 points to a "Greed" score of 64 as of May 15. Daan suggested that GameStop's stock market price rally reassured crypto traders that similar memecoins in the digital currency market would see a similar effect. Traders, unable to discern the reason for the price hike, form narratives to make sense of it, relayed Daan, who also noted that the 2021 GameStop episode is still fresh in many people's minds. If the price rises, people don't need to know why - the price increase should be all that matters, they said.
In contrast, Dynamo DeFi's founder, Patrick Scott, thinks the crypto market is abound with narratives. He argued that tokenized real-world assets have surged from virtually non-existent to billions of dollars in recent years. Scott also pointed to Solana's on-chain activity now matching Ethereum and Decentralized Physical Infrastructure Networks (DePIN) bringing non-speculative income into the crypto sector. As always, we advise that all investment and trading moves come with risk and suggest readers conduct their independent research before making any decision.
Published At
5/15/2024 6:14:28 AM
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