Musk ‘Peanut’ Tweet Sparks PNUT Rally, Volume & Futures Surge
Elon Musk’s X post about an allegedly euthanized squirrel named Peanut triggered a more than 10% rally in PNUT, a Solana-based memecoin. The PNUT token’s price peaked at $0.235 before settling around $0.2193. On-chain data show daily trading volume jumped over 150% to $273 million, while open interest in PNUT futures climbed 14% to $132 million. Earlier, volume had risen 80% to $215 million, lifting PNUT market capitalization to about $224 million on a 1-billion-token supply. Traders leveraged Solana’s low fees and fast speeds, with crypto bots and retail investors fueling buy orders. Despite the speculative rally, PNUT lacks formal utility or a roadmap. Crypto strategist Javon Marks forecasts a potential 654% breakout toward $1.79, citing strong bullish momentum, but warns that sentiment-driven gains can reverse rapidly. Traders should consider profit-taking to manage bubble risk.
Bullish
Elon Musk’s endorsement via the ‘Peanut’ tweet drove immediate buying pressure on PNUT, reflected in double-digit price gains, record trading volumes, and rising futures open interest. Short-term trading desks and retail investors responded rapidly on Solana’s low-fee network, signaling bullish momentum. Technical analyst projections of a potential 654% upside to $1.79 further underpin a positive outlook. However, absence of intrinsic utility, historical volatility of meme tokens, and reliance on viral narratives introduce significant downside risk. Overall, the news is bullish for PNUT in the near term but warrants caution for longer-term positions.