In the past 24 hours, a Solana-based meme token parodying the GameStop (GME) company has dropped by 25%, reflecting broader declines among meme tokens that tend to move in tandem with GameStop.
GameStop Stock Decline
The controversial rally of GameStop (GME) stock experienced a sharp reversal for the second consecutive day on Monday, closing the U.S. trading session down 12% after a dramatic 40% drop on Friday. This downturn impacted several meme tokens that often mimic GME’s movements.
Meme Token Performance
GME stock finished Monday’s trading at $24.89, a significant 62% drop from its two-year high of $61 reached last Thursday. Similarly, the Solana-based meme token GME, which parodies the company, fell 25%, reversing a remarkable 200% rally from the previous week.
Other related tokens, such as Roaring Kitty (KITTY) and various cat-themed tokens that typically follow GME stock, saw average losses of at least 10%, according to CoinGecko data. Dog-themed tokens like Dogecoin (DOGE), Shiba Inu (SHIB), and Floki (FLOKI) also pared gains from the last week, falling between 4% and 10%.
Retail Trader Influence
The volatility in GME stock began in late May with the return of retail trader and GME enthusiast Keith Gill, also known as @TheRoaringKitty and “DeepF*ckingValue.” Gill played a pivotal role in the 2021 short squeeze rally. Last week, he showcased a $580 million position in GME equity and options, briefly boosting the stock’s prices and positioning him for potential billion-dollar exposure.
Market Reaction
However, these gains were quickly wiped out after GameStop announced plans to sell up to 75 million shares, just days after raising $933 million by selling 45 million shares. Additionally, the company reported a drop in quarterly sales, which further dampened investor sentiment.
