Degens pumped GameStop memecoin because of ‘boredom’ — Traders
Several cryptocurrency traders said that along with the rise in GameStop (GME) stock price due to the overall market slump, the price of the unofficial GameStop memecoin also surged.
“People are bored and are showing little signs of hope that they can,” Daan Crypto Trades, an anonymous cryptocurrency trader, told Cointelegraph.
“The excitement generated around the GameStop memecoin shows there is unallocated capital out there,” Ed Hindi, chief investment officer at Tyr Capital, told Cointelegraph.
GameStop (GME), a Solana-based memecoin with no connection to the official company, is up 2,727% over the past two days, with Gamestop’s stock also up 204.50% over the same period, according to CoinMarketCap and Google Finance. data.
This comes after prominent GameStop stock trader Keith Gill posted from his “Roaring Kitty” X account for the first time in nearly three years on May 12.
the road has gone dark Posted on social media on June 19, 2021, it is back after a long hiatus. electricity It’s the classic cryptic meme of a gamer sitting on a chair to announce his return.
Meanwhile, among the top 100 cryptocurrencies, PEPE (PEPE) and Floki (FLOKI) were the only tokens to maintain significant gains, rising 35.73% and 11.27%, respectively, over the same period.
DOGE (DOGE) and Shiba Inu (SHIBA) experienced a surge on May 12, but have since retraced 1.76% and 1.39% in the last 24 hours.
This is a sign that traders are chasing a specific short-term narrative rather than having overall confidence in the market as a whole.
“Investors are overreacting to short-term trends like the GameStop event because the market is currently quiet. We need a new story in the cryptocurrency market,” declared Hindi.
At the same time, according to the Fear and Greed Index, overall market sentiment has decreased over the past 30 days, with the ‘greed’ score dropping by about 10 points to 64 as of May 15.
Related: Bitcoin traders expect Fed Chairman Powell to ‘pump our bags’ and BTC target $80K+.
Daan believes the surge in GameStop prices on the stock market reassured cryptocurrency traders that related memecoins in the cryptocurrency market would follow suit.
“If the price is going up and people don’t know why, they will think of a narrative to support and explain why the price is doing what it is doing,” Daan explained, adding that the 2021 GameStop “saga is still on a lot of people’s minds.” mind.”
“I don’t think we need anything other than prices going up. I always believe that price trumps story. So a project can have great fundamentals, but if the price doesn’t move, people don’t care,” he added.
Conversely, Dynamo DeFi founder Patrick Scott believes there is “no shortage of narrative” in the cryptocurrency market.
“Tokenized real-world assets have grown from non-existent assets to billions of dollars over the past few years, a trend currently seen with Solana and the DePIN network,” he told Cointelegraph.
“Solana’s on-chain activity now rivals Ethereum, and DePIN (Decentralized Physical Infrastructure Network) is bringing non-speculative returns to crypto.”
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
