Solana-based meme coin Peanut the Squirrel (PNUT) skyrocketed to a $130 million market cap within just three days, a remarkable feat for a coin that was relatively unknown just days prior.
The surge came after Tesla CEO Elon Musk commented on the sudden passing of the popular squirrel, sparking a frenzy among traders. This unexpected attention drove PNUT’s price and market cap to unprecedented levels. Here’s a closer look at how it unfolded.
Elon Musk’s Reaction Fuels Massive Meme Coin Purchase
Three days ago, Mark Long, caretaker of Peanut the Squirrel, disclosed that New York’s Department of Environmental Conservation (NYS DEC) had taken the animal from him. Longo, in his post on the social media platform, also mentions that the agency took a Raccoon he had reduced alongside the squirrel.
Later on, more details came out about the confiscation that the aminal had died while in the agency’s custody.
This development sparked outrage on social media, with Elon Musk condemning the agency’s actions. A US Congressman, in a now-deleted post, also criticized the NYSD DEC for its role in the animal’s demise.
“The government is a mindless and heartless killing machine.” Musk said about the matter.
Moments after this, meme coin traders, popularly called “degenerates,” began to buy the PNUT meme coin in droves. According to smart money platform GMGN, some of those first set of buyers put in thousands of dollars, which accelerated the token’s upward movement.
Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide
PNUT Market Cap Rises, Falls Amid Profit-Taking
Following extensive media coverage of Peanut the Squirrel’s demise, whales began buying the meme coin in large volumes.
For example, Lookonchain data reveals that one whale sold 5,100 Solana tokens to acquire 8.99 million PNUT, worth approximately $839,207.
Around the same time, these whales also purchased First Convicted RACCON (FRED). As whales poured in, retail investors followed, creating significant buying pressure that pushed PNUT’s market cap above $130 million.
Meanwhile, the massive buying pressure ensured that Peanut the Squirrel’s price hit a peak of $0.14. Trading volume around the Solana meme coin also surpassed $300 million at some point.
However, according to Gecko Terminal, PNUT’s market cap has decreased to $93.98 million. The price, on the other hand, has dropped to $0.094 due to the profit-taking by early buyers of the meme coin.
Read More: 11 Top Solana Meme Coins to Watch in November 2024
In addition, should the PNUT meme coin’s price rebound, it could surpass that of Moo Deng (MOODENG), another animal-themed meme coin whose market cap is about $151 million as of this writing.
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Victor Olanrewaju
https://beincrypto.com/elon-musk-peanut-the-squirrel-meme-coin/
2024-11-03 14:05:30
