Dogecoin Owners Back in Green YTD as Meme Stocks Rip

Meme stocks are once again drawing the attention of traders — coinciding with a 2023 jump in value in meme cryptocurrencies, including sector stalwarts Dogecoin and Shiba Inu.

The emerging sentiment— underscored by amped-up meme asset trading volumes — lingered into Tuesday’s session. The continuing investor interest appears to be bucking a downturn in meme equities late in Monday’s trading session in New York.

Longtime meme stock AMC finished Monday’s trading session 12% higher at $6.80 — after rising to a peak of $7.26. Most of that double-digit pop was erased on Tuesday as the US movie theater chain’s equity dropped 8%.

But the NYSE-listed asset was still posting a 57% gain on the year. 

Home retailer Bed Bath & Beyond (BBBY) climbed an eye-watering 92% to $5.85 to start the week — before giving 36% back to hover around $3.70 in Monday’s after-hours trading hours. The stock gave up another 48% on Tuesday.  

Daily gains were knee-capped in after-hours trade on Monday following an announcement by company executives over their intention to sell convertible shares in order to avoid loan default and prevent bankruptcy. Still, BBBY is up more than 30% so far this year, marking a notable recovery from its 80% decline since last year’s $30 peak. 

Traders also demonstrated a renewed interest in meme stock pioneer GameStop (GME), albeit demonstrated by a relatively smaller pop to start the week. GME jumped 7% higher on Monday to $24.70. Like the others, GME declined 11% Tuesday as traders booked a profit. The equity is still up more than 20% in the new year. 

The GameStop short squeeze of January 2021 brought to light stocks with heavy Wall Street short floats —  and sparked a movement driven by Reddit traders to drive up similarly beleaguered equities in a show of retail force.

More (meme) bark than bite?

Meme stocks and coins have gained renewed attention recently as worries about inflation and the macro environment have started to ease, according to Rob Alcorn, Clearpool’s chief executive. 

“Meme coins generally distract attention from the real innovation happening in the digital asset space,” Alcorn told Blockworks. “Whilst very speculative, this is an indicator that retail sentiment is turning positive once again following an extended period of selling.”

The recent meme stock surge has mirrored an upward trend in their crypto counterparts. On the year, dogecoin has this week clawed back more than 31% of its losses — and shiba inu has roared back to the tune of 2023 gains of as much as 75%. 

For context, both bitcoin and ether have risen by approximately 36% over the same time period.

That’s good news for the majority of dogecoin holders, now in the money or profiting from their original purchase.  

Data from crypto intelligence firm IntoTheBlock show, of roughly four million wallet addresses holding the asset, around 62% are in the money. Just 35% of those addresses are posting losses.

A majority of those addresses booking gains bought in at an average price of $0.008. The asset was last seen changing hands for around $0.09, representing a 1020% increase for those who bought then. 

IntoTheBlock’s Global In/Out of the Money categorizes addresses by their current profit or loss status relative to the current market price. Addresses are classified as “in the money” if they are making a profit, “at the money” if they are breaking even or “out of the money” if they are underwater.

It’s a little hairier for those holding shib, Shibu Inu’s native token. 

Of the 1.2 million addresses analyzed, roughly 44.5% are showing a profit.

An additional 54% have bitten off more than they can chew.

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