GameStop Falls 60%, Sparking Panic in the Meme Sector

The recent tumultuous rally in GameStop (GME) shares continued on Monday for a second straight day of declines, marking a 12% decline in U.S. trading following a significant 40% decline on Friday. This downtrend not only affected GME, but also had an impact on meme tokens, which often mimic stock movements.

By the closing bell on Monday, GME was trading at $24.89, down a significant 62% from its recent high of $61 just two days earlier. Similarly, the Solana-based meme token GME, which humorously mimics the company, experienced a 25% drop, reversing a remarkable 200% gain from the previous week.

According to the data, the GME token is currently trading at $0.01624, after falling almost 20% in just 24 hours. The market capitalization is valued at $112.21 million and the 24-hour trading volume is $110.14 million, representing a staggering increase of 98.72%.

According to data collected by CoinGecko, other related tokens such as Roaring Kitty (KITTY) and various cat-themed tokens that have previously shown correlation with GME movement have seen losses of at least 10% on average.

Dog-themed tokens such as doge (DOGE), Shiba Inu (SHIB), and Floki (FLOKI) also saw their gains decline from the previous week, with declines ranging from 4% to 10%.

GME stock price volatility began in late May, coinciding with the re-emergence of retail trader and GME enthusiast Keith Gill, also known by his online nicknames @TheRoaring Kitty and “DeepF*uckingValue.”

Gill’s reported $580 million position in GME stocks and options last week initially boosted stock prices, potentially giving him exposure to $1 billion. However, these gains were quickly erased after the company announced plans to issue up to 75 million shares amid a decline in quarterly sales, weakening investor confidence.

In summary, the sharp rise in GME stock prices, driven by retail investor activity and corporate decisions, has had ripple effects across related meme tokens, reflecting the interconnectedness and impact of Internet-driven financial phenomena.

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