GameStop’s recent share price gains have nearly evaporated, and an unofficial GameStop tribute coin on the Solana blockchain, known as the GME token, has experienced a similar downfall.
According to CoinGecko, the GME token has plummeted to $0.0067, marking a 69% drop from its all-time high earlier this week.
This stark decline follows a period of flat trading since its January launch, with a brief surge in early February.
Dramatic fluctuations in trading volume
Trading volume for the GME token has also significantly decreased. Over the past 24 hours, the volume dropped to approximately $65 million, which is about one-third of this week’s peak, aligning with the price dip.
Despite the downturn, the GME token still boasts a remarkable 1,080% increase over the past week, outperforming GameStop’s actual stock price, which has risen about 17% since last Friday’s market close.
At the time of publication, GME shares are valued at $20.50, down 68% from their peak on Tuesday.
GameStop shares hit by stock sale announcement
In related news, GameStop has filed to sell up to 45 million of its GME shares, potentially increasing the total number of shares by 15%.
This announcement has contributed to the stock’s volatility. Concurrently, GameStop’s preliminary Q1 results revealed a 30% decrease in net sales compared to the previous year.
However, the company’s net loss is expected to be up to $23.5 million less than last year, potentially reducing the net loss to $37 million.
Impact of Roaring Kitty’s return
GameStop’s share price experienced a spike on Monday, driven by the apparent return of Roaring Kitty, also known as Keith Gill. Gill, a prominent figure in the 2021 meme stock craze, reignited interest in GameStop and other meme stocks like AMC.
Despite the initial excitement, the enthusiasm quickly waned as Roaring Kitty has not resumed his influential livestreams or active postings on Reddit.
Instead, his social media activity has been limited to sharing memes and edited movie clips, which has not been enough to sustain the momentum.
Market sentiment and future outlook
The rapid rise and subsequent fall of both GameStop shares and the GME token on Solana highlight the speculative nature of meme stocks and related cryptocurrencies.
The market’s reaction to the stock sale announcement and preliminary financial results indicates a cautious approach from investors, balancing between the potential for recovery and the risks associated with the volatile performance of GameStop.
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