Meme coins have taken a significant hit, experiencing a notable decline following GameStop’s dramatic stock crash on June 7. Major meme coins such as Pepe, Dogewheat, Floki, and Bonk saw their values drop by over 10%, echoing the turbulent movement in GameStop’s stock.

This decline in meme coins, though smaller than GameStop’s crash, underscores the market's unpredictability. GameStop’s stock had surged 47% the previous day in anticipation of a live broadcast by Keith Gill, famously known as ‘Roaring Kitty,’ who had previously spearheaded the GameStop rally. However, the stock plummeted by as much as 40% after the 50-minute broadcast failed to deliver new information. This unpredictability rippled through the market, impacting meme coins that had ridden the wave of the meme stock rally.

According to CoinMarketCap data on June 8, notable meme coins recorded significant losses: Dogecoin and Shiba Inu fell by 7.56% and 6.23%, respectively, while Pepe dropped 10.82%, Dogewheat 12.47%, Floki 12.93%, and Bonk 11.35%. This decline occurred amidst a broader crypto market downturn, which saw the market shed $65 billion in less than a week. This downturn prompted investors to rotate capital into stablecoins or less risky assets, exacerbating the meme coin decline.

Prominent analyst Il Capo interpreted this as a “shakeout” amid an uptrend, highlighting a clear support test for Solana, the platform underlying many major meme coins. The social volume of these altcoins also plummeted by over 20% in the last 24 hours, reflecting negative sentiment and the accompanying price decline.

Gill’s re-emergence on social media after more than three years reignited excitement, causing frequent trading halts in GameStop (GME) trading on traditional exchanges and sparking a surge in meme coin activity amidst a bullish crypto market. Gill’s GME portfolio is approaching the $1 billion mark, driving significant gains in GameStop-themed meme coins over the past 24 hours.

Standouts in this rally include:
- The Solana-based Roaring Kitty (KITTY) coin, which soared nearly 300% to approximately $0.0344 by Friday.
- The Ethereum-based Roaring Kitty (ROAR) coin, which jumped over 126%, reaching around $0.00154.
- The Solana-based GME (GME) coin, which rallied more than 115% to about $0.025.
- The Ethereum-based GME coin, which rose over 83% to trade at approximately $0.00006286.

GME’s rally was marked by a daily trading volume exceeding $357 million and a market cap of around $202 million. These rapid increases in parody meme coins highlight the intense FOMO (Fear Of Missing Out) sweeping the crypto market. The meme coin industry has achieved a market cap of nearly $57.6 billion, with a daily trading volume surpassing $9 billion.

Meanwhile, the lack of action from the US SEC against Gill suggests that the meme coin frenzy could spark a new altseason. Bitcoin’s dominance appears to be reversing, highlighted by significant gains in Ethereum (ETH) and BNB, indicating a potential market shift.

Amid these developments, renowned digital artist Beeple, known for his record-breaking $69.3 million NFT sale, has stirred controversy with his latest artwork, “CURIOSITY KILLED THE CAT.” Some interpret it as a commentary on the risks associated with the hype and speculation surrounding meme stocks and cryptocurrencies. The timing and intent behind Beeple’s artwork have been questioned, given Roaring Kitty’s influential role in mobilizing retail investors and shaping market dynamics. Concerns are heightened about the potential impact of this provocative imagery on GameStop’s already volatile stock price.

Conversely, some experts suggest that Roaring Kitty’s recent return could signal the onset of a meme coin supercycle, marking an exciting new phase for the cryptocurrency market.