The "Roaring Kitty" mania rippled across the meme coin market, causing coins themed on kitty avatars to soar to unprecedented heights.
What Happened: Coins, which had nothing to do with either Roaring Kitty — the social media nickname of retail trader Keith Gill — or Gamestop, the company at the center of the well-known short squeeze in January 2021, began climbing solely due to the buzz surrounding the word “Kitty.”
Ethereum-based Raoaring Kitty was the largest gainer in the memecoin space,exploding 545% over the last 24 hours, according to data from CoinGecko. Similarly, Solana-based Kitty Coin Solana was up 126% in the said timeframe, ranking as the third-best-performing coin in the space.
Amid these astronomical gains, on-chain tracking site Lookonchain revealed how a trader purchased a large amount of KITTY moments before the tweet from Roaring Kitty–the event that sparked the euphoria.
The "lucky" trader then sold a significant portion of his stash when prices pumped, leading to a massive 32x jump in profits.
Why It Matters: The phenomenon reaffirmed the volatile and speculative nature of meme coins, requiring just a social media post to swing wildly.
While they appear enticing to a lay investor during periods of hype, questions remain regarding the sustainability of the surge. It would be interesting to observe how long these new kitty-themed tokens can keep their upward trend.
Image Courtesy: Pixabay
It was observed that the more established meme coins seem to show greater resilience during weak markets.
Read Next: GameStop Stock Pumps, But What About The GameStop Meme Coin?
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