The crypto universe is abuzz with excitement over Peanut the Squirrel (PNUT), a meme coin based on the Solana blockchain that has rapidly gained attention. This surge in interest follows a pivotal announcement from Coinbase, detailing their plans to list $PNUT for trading. In response, the token’s value soared by an impressive 19% within just one hour, reaching a price of $1.27 and securing a market capitalization of $1.27 billion. The coin draws inspiration from the internet-famous squirrel, Peanut, who became a topic of controversy after being euthanized by New York authorities.
Elon Musk’s Impact on PNUT’s Price
The Peanut meme coin (PNUT) experienced a dramatic increase in market cap, skyrocketing from $3 million to an astounding $140 million in just 24 hours, following a post on X by Elon Musk. Although its price maintained steady growth since mid-November, it recently experienced a decline of 9.7%, now trading at $1.11. This downturn appears to be part of a broader market trend rather than an issue inherent to PNUT.
Investor Interest in Low-Cap Assets
As Bitcoin flirts with the $100K mark amidst recent fluctuations, investors are increasingly turning their attention to emerging coins, particularly low-cap assets, in a bid to diversify their portfolios and mitigate risk. The past weeks have witnessed numerous surges in the meme and altcoin sectors, underscoring the growing popularity of these assets.
Yet Another Meme Rises with the “Coinbase Effect”
Meme coins have seen a significant uptick in the crypto space since Donald Trump’s election victory. Leading the charge is Peanut the Squirrel (PNUT), which experienced a boost following Coinbase’s announcement of its intention to list the coin. This move aligns with the exchange’s recent focus on meme tokens like Mog Coin (MOG) and Turbo (TURBO). Notably, GIGA recently achieved an all-time high of $0.077, while TURBO experienced a 15% jump following its listing announcement. Known as the “Coinbase Effect,” such announcements often trigger substantial price surges, with PNUT recently gaining 19%.
Risky Yet Rewarding
Despite its recent highs, PNUT remains 45% below its November peak of $2.44, which it reached following a Binance listing. The official listing on Binance led to a 320% surge in value, solidifying PNUT’s status as the leading meme coin on Solana’s Pump.fun platform, where over four million meme tokens have been created. While meme coins like PNUT have the potential for substantial gains—one trader famously turned $16 into $3 million—they are inherently volatile and subject to significant price swings.
The Global Crypto Market Rebound
On a global scale, Bitcoin has once again reached the $100,000 mark, pulling major altcoins like XRP, Dogecoin, and Solana into positive territory. The crypto market’s resurgence follows data indicating that U.S. inflation is rising at anticipated levels, fostering optimism among investors. In this market rally, PNUT, a low-cap meme coin, is outperforming larger coins, setting the stage for a potential meme rally in the first quarter of 2025. Currently, PNUT is trading at $1.34, with a market capitalization of $1.34 billion.
Bullish Outlook for PNUT
Crypto analysts maintain a bullish outlook on PNUT’s future, with some forecasting a potential price surge of up to 463%. As the market continues to evolve, investors are keenly observing the performance of emerging meme coins, recognizing the unique opportunities they present within the broader crypto landscape.
