Some meme companies , like AMC, are making a comeback. The ratings of some memes also shoot up cryptocurrencies like Shiba Inu . Sentiment has improved so much that the meme boom is slowly coming back.
meme- stock craze back on the US stock market after two years ? There are many indications of this. Maybe not all the heroes of the sick boom two years ago got up from their knees, but many of them are getting up.
Recall that during the meme boom stocks , fueled by cheap money, stocks of companies that were in a bad fundamental situation became more expensive. However, these companies were targeted by masses of young people who bought their shares for various reasons. The clash of Reddit forum members has gone down in history Wallstreetbets and hedge funds , which played on the fall in the share price of GameStop - a distributor of equipment for players.
Meme madness stocks on the horizon again
Over the past 10 sessions, GameStop 's stock is up 18% and AMC Entertainment Holdings' stock is up 34%. Some cryptos are also insanely expensive , e.g. in the mentioned period of 10 sessions , Decentraland increased in value by 100%, Enjin Coin by 65% and Solana by 57%. Shiba's height is also noteworthy Inu by 33%.
To put this in context, let's add that within 10 sessions, the S&P500 went up by only 2.5%, and bitcoin went up by 24%. It shows surprisingly poor dogecoin , which grew in value by only 10% during the period in question.
AMC Entertainment Holdings listed on Nasdaq Composite background
Source: TradingView
When we look at the behavior of meme-stocks and meme-coins , it's worth realizing that nothing special happened there. In most cases, there was no significant information that could have influenced such large price movements. Maybe the exception is the token Shiba Inu , because the fan community of this cryptocurrency awaits the release of Shibarium - a layer 2 scaling solution that is being developed by the Shiba team Inu .
So why the increase in meme-stocks and meme-coins ?
If you don't know what it is, it's about general market sentiment. The CBOE volatility index - the so-called VIX "fear index" - fell to 19 points on Wednesday. This is the lowest level since the beginning of April 2022, when the S&P 500 was much higher and BTC turnover was much higher than it is now. Also Crypto The Fear and Greed Index is at its highest level in many, many months (precisely, the highest level since the beginning of 2022), which means that fear has evaporated.
VIX quotes
Source : Google Finance
Crypto Fear and Greed Index quotes
Source: Alternative.me
meme basket stocks still has plenty of room to grow
It can be seen that the sentiment towards risky assets is improving quite quickly. In November, the FTX stock exchange collapsed and everyone was trembling about the future of the cryptocurrency market , and today there is no trace of this great fear. On the other hand, stocks are getting more expensive because inflation is not galloping, which gives hope that the end of the cycle of interest rate hikes by the Fed is not far away. And that's why investors are starting to buy risky assets - they want to hear the music play again, they want to see green in their wallets again.
Of course, not surprisingly, there are already warning voices of analysts:
On the other hand, a whole meme basket stocks still has a lot of room for growth if it were to return to historical peaks...