The cryptocurrency and stock markets are abuzz with speculation of a memecoin and meme stock revival, fueled by the surprise return of renowned trader Keith Gill alias “Roaring Kitty”, who ignited the infamous GameStop frenzy in 2021.
On Monday, Gill posted a cryptic meme on X (similar to Twitter), sending shockwaves through the stock market world. The post, depicting a gamer leaning intently into a controller, was interpreted by many as a bullish signal for meme stocks and crypto assets.
This sentiment translated into immediate action. GameStop (GME) shares skyrocketed by over 100% at one point, triggering multiple trading halts on the Nasdaq due to overwhelming demand. Notably, in 2021, Gill’s social media activity spurred a legion of retail investors into GameStop, causing its stock price to surge over 1,000% in a single month.
The ripple effects extended to the memecoin space. Dogecoin (DOGE) jumped 5.2%, while Shiba Inu (SHIB) also saw a 5.5% increase. Notably, Dogecoin skyrocketed roughly 8,000% in early 2021 following the GME rally before retracing.
Following GME’s latest spike, analysts are divided on whether a full-blown memecoin resurgence is imminent. Some, like Josh Gilbert a analyst for eToro, believe the current economic climate, with rising interest rates and global inflation, is vastly different from the loose monetary policies of 2021 that fueled the initial meme frenzy.
However, others remain optimistic. Chris, a WEB3 Content Creator and head of Marketing at BTCFrontierFund, points to the potential for a “meme coin supercycle” fueled by nostalgia and the ease of access provided by platforms like Robinhood, which recently integrated with decentralized exchange Uniswap.
“Will GME Lead the Memecoin Supercycle? The legend himself has returned. While GameStop was his focus, this led to a cultural meme movement. This was the time we ACTUALLY saw crypto onboarding. DOGE did a 100x in 3 months. We’ve already seen millionaires made overnight last night,” Chris stated, “but there’s so much more opportunity out there.”
Elsewhere Trader OSF, followed by 193,000 Twitter users, added fuel to the speculation, tweeting, “Study the banana zone of $DOGE in Q1 2021 right after the GME mania as ‘meme power’ continued into crypto. If GME is sustained then odds are we are on the precipice of another big memecoin frenzy in crypto. The two are not unrelated.”
That said, GME continued to remain a focal point for traders. The stock surging on Tuesday reached as high as $65 before retracing to approximately $48 on the closing bell. Elsewhere, DOGE and SHIB, the predominant meme tokens based on market capitalization, exhibited resilience, with each experiencing increases of 1.01% and 1.82%, respectively, over the past 24 hours.
