Meet Peanut the Squirrel (PNUT), a meme coin from the Solana ecosystem that made a wild dash into the spotlight over the weekend.
In a mere 72 hours, Peanut the Squirrel has ballooned to a $130 million market cap, riding the crest of social media hype and a sprinkle of Elon Musk meme magic. Here’s a snapshot of this rollercoaster ride.
Elon Musk’s Impact on Peanut the Squirrel Meme Coin Frenzy
New York State is now the most hated state in America
Nothing cuter than a man and his Squirrel
RIP Peanut pic.twitter.com/8bYn79gBbI
— Elon Musk Nation (@ElonMusk_Nation) November 2, 2024
PNUT’s sudden value increase was mainly driven by a tweet from Tesla CEO Elon Musk about the controversial seizure and death of his pet squirrel, Peanut. Mark Longo, Peanut’s caretaker, announced that New York’s Department of Environmental Conservation had confiscated the animal, sparking widespread public outrage.
Musk’s comment, criticizing the agency’s actions, ignited a buying spree among meme coin enthusiasts.
“The government is a mindless and heartless killing machine.” – Elon Musk on Social Media
( PNUT ) While the Peanut the Squirrel incident was tragic, the meme coin community, famed for its erratic moves, did not disappoint. Internet degens swarmed PNUT like a cash tornado, with some tossing in thousands, GMGN reports .
This stampede of investments launched the coin’s price and market cap to dizzying new heights.
Market Dynamics of $PNUT: From Peak to Profit-Taking
As media coverage of Peanut the Squirrel’s story intensified, whales joined the fray, making their moves. Notably, data from Lookonchain showed a whale exchanging 5,100 Solana tokens for 8.99 million PNUT, a transaction valued at approximately $839,207.
This move and others created significant buying pressure, pushing PNUT’s market cap beyond $150 million and its price to an all-time high of $0.60.
This is Elon's 3rd time pinning a $PNUT post.
In 2021, I studied 6 months of Elon tweets.
What I learned was that once he latches onto something, he doesn't stop.
Instead, he actually accelerates.
Now take into account that PNUT is the symbol of government overreach which… https://t.co/vay2PzNFKR
— DefiRabbitHole 🐇 🕳 (@DefiRabbitHole) November 4, 2024
However, the rapid buying spree was soon followed by profit-taking. As early adopters began to sell their holdings, PNUT’s market cap slipped back to around $93.98 million, with the price dropping to $0.04605
A Speculative Bubble or a New Trend?
The case of Peanut the Squirrel illustrates the power of social media and public figures in shaping market trends. Musk’s comments and a deleted post from a U.S. Congressman amplified the narrative, turning a local issue into a broader political debate. The incident also sparked discussions about government overreach, with Musk stating:
“Government overreach kidnapped an orphan squirrel and executed him.” – Elon Musk
As the buzz around PNUT fizzles, analysts predict its star will dim further after the U.S. elections as the public chases new distractions.
The rapid ascent and descent of PNUT serve as a cautionary tale about the speculative bubbles often seen in the crypto market. One trader’s experience of buying 19.4 million PNUT for 8 SOL only to see its value skyrocket later underscores the unpredictability of such investments.
