The actions belonging to the category dubbed “meme stocks” are once again soaring in the stock market, followed (partly) by the category of “meme coins” on-chain.
This moment of extreme euphoria and speculation could either last or will it be just another flash in the pan?
What is the reason behind this sudden rally?
It all started on Monday when Keith Gill, known as “Roaring Kitty” and a central figure behind the Reddit group Wall Street Bets, shared a meme on the X platform after a long period of inactivity.
This sparked excitement within the community, considered by many as the main cause of the “meme stock” boom during the crazy stock rally of 2021.
What seems most astonishing is the fact that Gill’s post did not mention any meme stocks, nor was it related to the stock market.
Nevertheless, GameStop and AMC stocks are among the most traded of the week.
The frenzy following the post is considered by many as incredible and highlights the euphoria that characterizes the stock market at the moment.
According to many, certain speculative movements are not a good sign.
However, the “madness” of the moment seems to have also infected the decentralized market, with many cryptocurrencies, categorizable as “meme coins,” starting to record significant increases, in some cases exceeding three-digit returns.
The rally mainly concerns the stock market.
The main protagonist at the moment is the GameStop (GME) stock, which has tripled trading volumes and currently records a return on capital of 347% compared to the year’s lows.
The euphoria has naturally spread to other stocks, including the renowned AMC, which has seen an increase of about 150% from the year’s lows.
Other major players in the price surge of 2021 have returned to the spotlight, including BlackBerry, with a 40% rise from the lows, and the brokerage system Robinhood, with a 12% return from the lows.
Even other small-cap stocks have leveraged the moment of euphoria to grow, highlighting a moment of strong speculation for the stock market, typically a symptom of a state of excessive euphoria.
The decentralized market also shows signs of absurdity and irrationality that should raise concerns.
In addition to the return of classic meme coins like the renowned DOGE and SHIBA INU, other projects also seem to have incredibly captured the interest of investors.
The most striking case is related to the decentralized and unofficial version of the GME stock, namely the memecoin on Solana from the American video game retailer GameStop, which has seen a staggering 2,291% surge in just the last week.
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