95

The share price of game retailer GameStop has stabilized after last week’s surge, but the GME tribute meme coin hasn’t been as fortunate. Despite being unrelated to the company and trading on Solana, the token has plummeted over 58% in the past week and nearly 16% in the last 24 hours, according to CoinMarketCap data.

Turbulent Month for the GME Meme Coin

The GME meme coin experienced a volatile month, initially spiking in early June when influencer Roaring Kitty (aka Keith Gill) returned after several years and increased his GameStop holdings to 9 million shares. This move caused a significant boost in both the company’s share price and the meme coin’s value.

On June 6, GameStop’s share price soared to around $46.55, more than doubling from the previous week. The surge was also supported by the company’s announcement that it had bolstered its cash reserves by securing $2.1 billion through an at-the-market equity offering.

Shareholder Meeting Impact

However, a disappointing shareholder meeting on Monday led to a drop in GameStop’s share price back to approximately $25, a level seen before Roaring Kitty’s reappearance. Despite CEO Ryan Cohen’s efforts to emphasize the company’s strong financial position, the shares failed to maintain their earlier gains.

To all the RED HEADBANDS here; whether you joined on day one, last month, or just today: Whether you hold 20 million $GME, 1 million $GME, or just 500 $GME, you are all a vital part of this incredible family and movement! Thank you so much for your support and belief in this… pic.twitter.com/yfupxgUOVP

— GMEonSol 🎮 (@gmecoinsol) June 17, 2024

The GME meme coin mirrored this decline, hitting its lowest price in over two weeks. As of now, the token is trading just above $0.008, still significantly higher than its pre-June levels of $0.003 to $0.004, but down from its June 7 peak of over $0.03 per token. Trading volume has also decreased sharply to around $53 million, half of what it was a week ago.

Historical Volatility

This isn’t the first time the GME meme coin has exhibited erratic behavior. A month ago, it saw a similar spike followed by a steep decline. When it leveled off in late May, the price remained higher than it was before the spike.

Future Outlook

It remains uncertain whether the GME meme coin will stabilize again after this latest downturn. Investors and observers are closely watching to see if history will repeat itself.