The GME token continued its downtrend after GameStop’s stock experienced heavy selling pressure following weak quarterly results.
GME (GME) retreated by 11.4% to $0.0041, bringing its total market cap to over $28 million, down from $157 million in May.
The token’s drop came after GameStop, which had risen on Friday after Roaring Kitty’s return to X, fell by over 15% to trade below $20.
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GameStop reported that its quarterly revenues dropped to over $798.3 million in the second quarter, down from $1.16 billion in the same period in 2023. This decline occurred as more customers opted to purchase video games online rather than in its stores.
The stock also dropped after the company hinted at raising cash by selling shares to bolster its balance sheet and fund potential acquisitions. GameStop holds over $4.1 billion in cash and has no debt.
The GME token tends to have a close correlation with GameStop stock. On Friday, the token rose to $0.0055, up by over 110% from its lowest point earlier in the week. GameStop also reached a two-month high after Roaring Kitty, the trader popular in Wall Street Bets, posted on X for the first time in months.
GME token vs GameStop stock have a close correlation | Source: TradingView
Before that, the GME coin rose to a record high of $0.03230 in May as the GameStop shares jumped to its 2021 high of $64 after Kitty returned to social media after a long hiatus. The two then dropped by double digits as the hype eased.
GME’s retreat also coincided with the gloomy mood in the stock and crypto market after the latest US inflation report. The Dow Jones and the S&P 500 indices dropped by over 0.50% while Bitcoin (BTC) fell to $56,400.
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