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After a nearly two-year hiatus, the trader known as RoaringKitty returned to social networks on May 13. Keith Gill, the real identity of RoaringKitty, is largely credited with fueling the rise of GameStop (GME) stock in late 2020, and his return was enough to send the price of GME higher almost 147% in 24 hours.
Furthermore, after his first post, Gill began sharing cryptic videos that attracted the attention of well-known crypto investors, such as Ansem. This formed a landscape that is seen by the trader who identifies himself as EllioTrades in preparation for a 'meme coin supercycle'.
However, some investors in the crypto community expressed concern that moves in traditional finance are capable of draining liquidity from cryptocurrencies. Eneko Knörr, CEO and co-founder of Stabolut, shared with Crypto Briefing that the liquidity of the crypto market is unlikely to be substantially affected.
“On the contrary, it seems that the return of meme stocks has brought attention back to meme coins, with PEPE trading at a surprising all-time high, for example. “This parallel rise in both meme stocks and meme coins indicates that the excitement generated by the return of RoaringKitty is not limited to a single market, but is a broader phenomenon that transcends traditional borders,” Knörr explained.
Furthermore, the Stabolut co-founder believes that the cryptocurrency market is well equipped to absorb and respond to such changes in investor sentiment, another sign that cryptocurrency liquidity will remain strong. “In fact, the overlap between the meme and cryptocurrency communities may even lead to cross-pollination of investment ideas and strategies, further driving the growth of both markets.”
A possible meme coin supercycle
Knörr highlights the impact that influencers and key opinion leaders (KOLs) have on the crypto industry, mentioning Max Keizer and Kris Marszalek, CEO of Crypto.com, as examples. Their voices, he adds, can shape market sentiment.
Therefore, RoaringKitty's return combined with interactions with notable cryptocurrency investors has the potential to trigger a meme coin supercycle.
“The evolution of KOLs has given rise to a budding economy in which influencers not only promote projects but also invest in them, often on favorable terms, of course. This change has raised concerns about transparency and potential conflicts of interest, as many KOLs do not disclose their financial ties to the projects they promote. Despite these concerns, the influence of KOLs on the cryptocurrency market is undeniable, and research suggests that they can significantly affect token prices and market trends.”
The impact mentioned by the Stabolut co-founder is even more significant when it comes to meme coins, which often thrive on the enthusiasm and engagement of influencers' followers, and the endorsement of a prominent influencer can be a major catalyst for their growth.
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