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Meme Coin Party Begins After GameStop Rally and Adds $5 Billion to Index
GameStop Corp (NYSE: GME) is back in action once again, leading to a strong frenzy on Wall Street. On Monday, May 13, the price of GameStop (GME) rose a strong 75% to $30.45, with the GME share price rising another 21% in after-hours trading. Interestingly, the GameStop meme coin (GME) is up an impressive 2,200% in the last 24 hours. This also led to a strong recovery in the meme coin sector.
GameStop Rally Triggers Coin Party Meme Similar to 2021
According to on-chain data provider Santiment, the memecoin market has witnessed an interesting start to the week, marked by notable breakouts and decouplings in the last 24 hours. Trading volumes among the top 50 assets in the meme coin sector increased by more than 34%. Furthermore, this sector alone added 5 billion dollars to investors’ wealth in the last 24 hours. Dogecoin (DOGE) price rose 10%
Coins such as $PEPE, $MAGA, $MOG, $BITCOIN, $PONKE, $PEPE2.0, $SPX and $ANALOS are now attracting considerable interest, presenting potential opportunities for significant volatility. These developments highlight the dynamic nature of the memecoin market, prompting investors to monitor these assets closely.
Courtesy: Sanction
Short seller losses surpass $1 billion
During the 2021 pandemic period, Reddit traders led by Keith Gill orchestrated a remarkable turnaround against hedge funds profiting from short positions in what they considered to be a struggling brick-and-mortar game store. This unexpected surge in support caused the price of GME to soar over 1,000% in less than a month.
Monday’s surprise rise in GameStop’s share price inflicted losses of nearly $1 billion on short sellers, as reported by data from S3 Partners.
As GameStop rose 74%, hedge funds involved in short selling faced a mark-to-market loss totaling $838 million on the traditional video game retailer, according to data from S3 Partners.
The sharp rise in the stock price appeared to have been instigated by “Roaring Kitty,” which previously rallied a legion of day traders to invest in gaming stocks in 2021, a historic event in the annals of Wall Street. Ihor Dusaniwsky, managing director of predictive analytics at S3, said: “Expect short covering on this stock as it already had a compression score of 100/100 prior to today’s trading.”