Is the meme coin mania back to crypto?

Is the Meme Coin Mania Back to Crypto?

After a period of low activity, meme coins are making a comeback in the cryptocurrency market. This renewed interest was sparked by the return of famous meme trader Keith Gill to social platforms on May 13. Gill, known as Roaring Kitty, was instrumental in the GameStop (NYSE: GME) short squeeze in 2021, which was followed by a surge in Dogecoin (DOGE).

Data from Santiment's SanBase Pro, analyzed by Vinicius Barbosa for Finbold on May 14, indicates a resurgence of meme coins. PEPE is leading the charge among today's trending coins, followed by FLOKI, DOGE, Shiba Inu (SHIB), and dogwifhat (WIF).

Trending Coins on May 14. Source: Santiment / Vini Barbosa for Finbold

Notably, PEPE, the Ethereum-based meme token featuring Pepe The Frog, has soared over 21% in the last 24 hours, reaching $0.000011. This level was previously seen in early March during the meme coin boom. Moreover, PEPE's social dominance has reached a record high of 2.46% of the market's overall social interest.

While other meme coins have not yet followed PEPE's price action, their increased social media presence suggests that the meme coin mania may be returning to cryptocurrency trading.

Trending Coins on May 14. Source: Santiment / Vini Barbosa for Finbold

Roaring Kitty's Return: GameStop and Meme Coin Mania

Roaring Kitty, the pseudonym for Keith Gill, reactivated his X (formerly Twitter) account after three years of inactivity. The account's last post, from June 18, 2021, featured a meme of a "gamer" preparing to play. On May 12, a similar meme was posted.

pic.twitter.com/YgjVqtgcNS— Roaring Kitty (@TheRoaringKitty) May 13, 2024

Interestingly, GameStop's stock jumped 45% on Monday, the day after Gill's mysterious activity. GME currently trades at $30.45. However, a CNBC report indicates a 130% surge in today's pre-market, with GameStop dominating the stock market attention.

Since then, Roaring Kitty has continued to post enigmatic videos, which cryptocurrency and stock traders are eagerly analyzing to identify the next potential meme coin pump, similar to the GameStop event in 2021. Related terms such as "gme, gamestop, kitty, and roaring" have dominated Santiment's trending feed.

Trending Words on May 14. Source: Santiment / Finbold

It is important to note that trading meme coins or meme stocks can be extremely risky due to their high volatility. Experts warn of the "Greater Fool" theory, which suggests that financial bubbles form when buyers continue to purchase assets based on speculation rather than intrinsic value. When the "mania" ends, late buyers are left with significant losses.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.