Some crypto investors say that unofficial GameStop memecoin projects’ prices have risen due to the general market stagnation, coinciding with the increase in GameStop’s (GME) stock price. Daan Crypto Trades commented on the matter, stating that people are bored and grasping at any sign of hope they can find.
GameStop and the Memecoin Space
GameStop projects started a discussion, with Tyr Capital’s Chief Investment Officer Ed Hindi saying:
“The excitement around GameStop memecoin projects shows that there is unallocated capital there.”
According to CoinMarketCap and Google Finance, the Solana-based memecoin GameStop (GME), which has no official connection to the company, increased by 2,727% in the last two days, while GameStop’s stock price rose by 204.50% in the same period.
This surge followed the first post in nearly three years by well-known GameStop trader Keith Gill on his Roaring Kitty X account on May 12. Gill had closed his social media account on June 19, 2021, but returned after a long hiatus, posting a typical cryptic visual of a gamer sitting in a chair to announce his comeback.
Meanwhile, among the top 100 cryptocurrencies, memecoin projects PEPE and Floki (FLOKI) saw significant gains of 35.73% and 11.27%, respectively, in the same period. DOGE and Shiba Inu (SHIBA) experienced rises on May 12 but have since retracted by 1.76% and 1.39% in the last 24 hours.
What’s Happening in the Market?
These developments signal that investors are chasing specific short-term narratives rather than having general confidence in the entire market. Investors are overreacting to short-term trends like the GameStop event because the market is currently quiet. Hindi stated that the crypto markets need a new process.
Additionally, according to the Fear and Greed Index, overall market sentiment has declined over the past 30 days, with the greed score dropping by about 10 points to 64 as of May 15. Daan believes that the GameStop stock price increase reassures crypto investors that related memecoin projects in the crypto market will do the same:
“If the price rises and people don’t know why, they will think of developments to support and explain why the price is doing so.”
