The Solana-based meme coin, Peanut the Squirrel (PNUT), skyrocketed to a market cap of $130 million in just three days, a remarkable feat for a coin that was relatively unknown just days before.
The rise came after Tesla CEO Elon Musk commented on the sudden death of the popular squirrel, sparking a frenzy among traders. This unexpected attention pushed the price and market capitalization of PNUT to unprecedented levels. Here’s a closer look at how it went down.
Elon Musk’s Reaction Fuels Massive Coin Purchasing
Three days ago, Mark Long, Peanut the Squirrel’s guardian, disclosed that the New York Department of Environmental Conservation (NYS DEC) had removed the animal from him. Longo, in his post on the social media platform, also mentions that the agency took a raccoon that he had shrunk alongside the squirrel.
Later, more details were revealed about the confiscation, according to which Aminal had died while in the agency’s custody.
The 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 disappearance.
“The government is a mindless, heartless killing machine. » Musk said about the question.
Moments later, meme coin traders, commonly referred to as “degenerates,” began purchasing the PNUT meme coin en masse. According to smart money platform GMGN, some of these early buyers invested thousands of dollars, which accelerated the token’s upward movement.
Learn more: How to Buy Solana Meme Coin: A Step-by-Step Guide
PNUT Market Cap Rises, Declines Amid Profit Taking
Following widespread media coverage of Peanut the Squirrel’s disappearance, whales began purchasing 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 the whales flocked, retail investors followed, creating significant buying pressure that pushed PNUT’s market cap above $130 million.
Meanwhile, massive buying pressure helped Peanut the Squirrel price reach a high of $0.14. Trading volume around the Solana meme coin also exceeded $300 million at one point.
However, according to Gecko Terminal, PNUT’s market capitalization decreased to $93.98 million. The price, on the other hand, fell to $0.094 due to profit-taking by early buyers of the meme coin.
Learn more: 11 Best Solana Meme Pieces to Watch Out for in November 2024
Additionally, if the price of PNUT meme coin rebounds, it could surpass that of Moo Deng (MOODENG)another animal-themed coin with a market cap of around $151 million at the time of this writing.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decision. Please note that our Terms and conditions, Privacy PolicyAnd Disclaimer have been updated.