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Can ‘Roaring Kitty’ bring about meme coin volume


Needham & Company is eyeing a potential resurgence in meme coin activity, a factor they believe could boost trading volume on cryptocurrency exchange Coinbase (NASDAQ:COIN).

The firm highlighted a significant drop in trading volume on COIN during May in a note Wednesday, attributing it to the lack of clear direction in the broader crypto market.

However, Needham remains bullish on Coinbase for the coming months. They point to several positive developments, including the return of “roaring kitty.”

This is a reference to popular retail investor Keith Gill, who is associated with the meme stock frenzy of 2021. Needham believes his return could reignite interest in meme coins, potentially driving volume on Coinbase.

In addition, they point to an improving regulatory landscape for cryptocurrencies, particularly in an election year where politicians may be more receptive to the industry.

Finally, they also believe a positive could be the potential approval of Ether ETFs, which could further attract retail investors into the crypto space.

Needham emphasizes the importance of meme coins in the crypto sphere, highlighting the recent success of Phantom, a crypto wallet known for storing meme coins. Needham argues the meme-based crypto economy will be a pillar for the space, and Coinbase can benefit by expanding its offerings in this area.

While May saw a decline, Needham concludes with an optimistic outlook for Coinbase. They believe the combination of potential meme coin activity, a more favorable regulatory environment, and the possibility of Ether ETFs could bring retail investors back to the platform, boosting its overall trading volume.

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