GameStop price rises by up to 17% in pre-market stock, with memecoins expected to enjoy a similar fate.
Pre-market data indicates that the share price of GameStop Corp (NYSE: GME) has experienced an extraordinary increase of approximately 17%. This transpires after a recent decline in the stock price precipitated by the disclosure of the organization’s intention to divest a significant fraction of its shares.
The price increase is already a subject of discussion in light of the current situation. Nevertheless, this phenomenon has also piqued the interest of traders, who are apprehensive that the surge could propagate to other investment products based on memes.
According to hourly time frame charts, notable meme coins are experiencing a price increase concurrent with the GME stock price. This comparable upward trend has sparked an industry-wide interest, which has raised questions about the potential correlation between the 17% price increase of GME and the observed upward trend in meme coins.
What Motivates the GameStop Price Rally (GME)?
The spotlight is on GameStop’s pre-market rally. The rise, nevertheless, is not unrelated to the occurrences of May 24. In a Form 8-K filing with the US Securities and Exchange Commission (SEC), GameStop Corp. disclosed that an at-the-market (ATM) program had been effectively utilized to sell 45 million shares. The sale, facilitated through an open market agreement involving Jefferies LLC, yielded approximately $933.4 million in aggregate proceeds.
According to NASDAQ pre-market data, GameStop’s stock was valued at $22.35, indicating a growth of 17%. This upswing indicates an increasing sense of assurance among investors after selling shares. Moreover, it signifies a continuous engagement with the organization’s developing strategic approach.
As previously mentioned, the GameStop price increase spreads to the meme coin sector. Despite experiencing negative 24-hour gains, the hourly charts of the top three meme cryptocurrencies by market capitalization indicate substantial upward momentum in recent hours, suggesting the presence of a correlated trend.
Dogecoin (DOGE), one of the most popular meme currencies, increased in value by 0.85% in the previous hour, reaching $0.1665. Similarly, Shiba Inu’s (SHIB) value rose 1.49 percent to $0.00002528, while the value of Pepe Coin surged 2.37 percent to $0.00001676. The price volatility indicates that the enthusiasm surrounding GameStop’s stock could extend to the meme coin market.
Additional meme coins, such as BONK, FLOKI, and WIF, also witnessed significant increases in value during the identical hourly period. Additionally, their prices have increased by 3-5%. At this time, this burgeoning phenomenon has amassed international interest. Market participants are speculating whether the momentum observed in GameStop stock could be replicated in the meme coin industry.
There is considerable enthusiasm surrounding GameStop’s financial strategy. Undeniably, the company’s balance sheet has been fortified by the effective sale of shares. The sale also fuels conspiracy regarding its future actions.
As GameStop persists in repackaging its products, the potential ramifications of its influence are becoming increasingly extensive. That is to say, transitioning from conventional stock markets to digital currencies.
