Fueled by a pre-market rally in GameStop stock, dog-themed meme coins gained significantly on Tuesday, May 28. This price action was a reminder of the 2021 “meme stock” craze, where individual investors banded together to push the prices of certain stocks and meme coins to astronomical levels.
Meme coins experienced a leap
The correlation is not a coincidence. Meme tokens like Floki (FLOKI) and dogwifhat (WIF) have a history of mimicking movements in “meme stocks” like GameStop (GME) and AMC Entertainment (AMC). This is because these tokens generally attract retail investors with a similar risk appetite and tendency to follow trends.
The spark for Tuesday’s rise came from GameStop. The video game retailer’s stock price rose more than 19% in premarket, creating a ripple effect in the meme coin market. FLOKI and WIF, built on the Ethereum and Solana blockchains, have jumped up to 8% respectively since the Asian trading session began. Even the more established Dogecoin (DOGE) saw a 2% gain in the last four hours, while Solana-based bonk (BONK) gained 5.5%.
GameStop effect
This isn’t the first time GameStop has impacted the meme coin market. As we reported as Kriptokoin.com, in 2021, the famous “GameStop short squeeze” caused individual investors to buy the stock and increase its price by more than 1,500%. This surge also coincided with a significant increase in meme coins such as Dogecoin. Shisui, the developer of the Mog token, noted this connection in a previous interview with CoinDesk, suggesting that “the Gamestop craze has spread to $DOGE and other meme coins.”
Additionally, the return of prominent retail investor Keith Gill, also known by his online moniker “TheRoaringKitty,” has further fueled speculation. Gill, who became famous for his GameStop options trades that turned $58,000 into an estimated $50 million, recently published a message for the first time in three years. This sparked a wave of excitement in the retail investor community, with some suggesting it could trigger another meme stock and meme coin craze.
What is the latest situation in prices?
Looking at specific numbers, market data from May 28 reveals a broader rally in popular meme coins in the Ethereum and Solana ecosystems. WIF peaked at $3.6654, up 14.6% in 24 hours. FLOKI wasn’t far behind, rising 13.55% to $0.000298. BONK, BOME, and TURBO also posted gains, up 7.73%, 8.11%, and a staggering 34.5% respectively.
To be informed about the latest developments, follow us twitter‘in, Facebookin And InstagramFollow on and Telegram And YouTube Join our channel!