GameStop Meme Coin on Solana Plummets as GME Hype Cools
The shares price of game retailer GameStop appears to have stabilized after experiencing a surge last week. However, the GME tribute meme coin, which is unrelated to the company and trades on Solana, has not fared as well. According to data from CoinGecko, the token has dropped more than 58% in the past week and nearly 16% in the past 24 hours.
The meme coin has had a tumultuous month. It initially spiked in early June when influencer Roaring Kitty (Keith Gill) re-emerged after several years and significantly increased his GameStop holdings to 9 million shares. This led to a surge in the company’s share price, peaking at around $46.55 on June 6, more than double its value from the previous week.
The GME shares and meme coin may have also benefited from news in early June that the company had strengthened its cash reserves by completing an at-the-market equity offering, securing $2.1 billion in proceeds.
However, a lackluster shareholder meeting on Monday caused shares to drop back to approximately $25, which was similar to their pre-Roaring Kitty hype level. CEO Ryan Cohen’s efforts to highlight the company’s “strong balance sheet” were not enough to prevent this decline. The GME token also experienced a decrease, reaching its lowest price in over two weeks overnight.
Despite the current decline, the GME token’s price of just over $0.008 still surpasses its pre-June levels, where it ranged between $0.003 and $0.004. However, it has significantly dropped from its peak of slightly over 3 cents per token on June 7. Trading volume has also dropped to around $53 million, approximately half of what it was a week ago.
This is not the first time the meme token has demonstrated erratic behavior. It experienced a similar, albeit smaller spike followed by a plummet a month ago. However, when it stabilized in late May, it was still considerably higher than before the spike. Whether the same pattern repeats remains to be seen.