Traders fuel GameStop memecoins frenzy due to sheer boredom – Degens are the culprits

Several crypto traders have claimed that the price of unofficial GameStop memecoins has surged in tandem with the rise of GameStop’s share price, which is attributed to a sluggish market. According to Cointelegraph, pseudonymous crypto trader Daan Crypto Trades stated, “People are bored and are grasping onto any glimmer of hope they can find.” Cointelegraph also reported that Ed Hindi, the chief investment officer of Tyr Capital, said, “The enthusiasm surrounding GameStop memecoins is indicative of available capital that is not being allocated.” CoinMarketCap and Google Finance data revealed that the Solana-based memecoin GameStop (GME), which is not affiliated with the company, experienced a 2,727% increase in the last two days, coinciding with a 204.50% surge in GameStop’s stock price. Furthermore, GME witnessed a 65.68% rise in the past 24 hours alone. The spike came after well-known GameStop stock trader Keith Gill, also known as “Roaring Kitty,” posted on his “Roaring Kitty” X account for the first time in nearly three years. Gill had been absent from social media since June 19, 2021, but made a comeback with a cryptic meme of a gamer sitting up in their chair. Meanwhile, among the top 100 cryptocurrencies, Pepe (PEPE) and Floki (FLOKI) were the only tokens to sustain significant gains during the same period, increasing by 35.73% and 11.27% respectively. Dogecoin (DOGE) and Shiba Inu (SHIBA) experienced a spike on May 12 but have since retraced by 1.76% and 1.39% in the past 24 hours. This suggests that traders are pursuing specific short-term narratives rather than having overall confidence in the entire market. Hindi stated, “Investors are overreacting to short-term trends like the GameStop event precisely because the market is quiet at the moment. We need a new narrative in the crypto markets.” Additionally, the Crypto Fear and Greed Index indicated a decrease in overall market sentiment over the past 30 days, dropping by approximately 10 points to a “Greed” score of 64 as of May 15. Daan believes that the surge in GameStop’s stock price reassured crypto traders that related memecoins in the crypto market would follow suit. He explained, “If the price goes up and people don’t know why, they will come up with narratives to support and explain the price movement,” adding that the 2021 GameStop “saga is still on many people’s minds.” He further stated, “I think all that needs to happen is for the price to go up. I have always believed that price comes before narrative. So projects can have strong fundamentals, but if the price doesn’t move, people won’t care.” In contrast, Patrick Scott, the founder of Dynamo DeFi, believes that “there is no shortage of narratives” in the crypto market. He highlighted the growth of tokenized real-world assets, which have gone from being virtually non-existent to billions of dollars in just a few years. Scott pointed to emerging trends on the Solana and decentralized physical infrastructure networks (DePINs). It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.