Musk's Reaction Spurs PNUT Meme Coin Surge Amid Squirrel Outrage

Elon Musk’s comments about the tragic death of Peanut the Squirrel have led to a sudden rise in the value of PNUT, a Solana-based meme coin. In a surprising twist, this relatively unknown cryptocurrency hit a market cap of $130 million within just three days, as both whales and retail investors jumped on the hype. This surge came after Musk expressed anger over the incident, sparking a wave of interest among traders.

The story began when Mark Long, caretaker of Peanut the Squirrel, shared that the New York Department of Environmental Conservation (NYS DEC) had taken the squirrel, along with a raccoon, into custody. According to Long’s post, the squirrel died while in the agency’s care. The news sparked a strong reaction on social media, with Elon Musk condemning the agency’s actions, calling the government a “mindless and heartless killing machine.” Following Musk’s statement, traders quickly began buying the PNUT meme coin, driving up its price and market cap.

The initial wave of buyers included both large investors, known as “whales,” and everyday retail traders, who together created massive buying pressure. One notable whale reportedly exchanged thousands of Solana tokens for millions of PNUT, significantly contributing to the token’s upward movement. The attention on PNUT even saw the trading volume surge to impressive levels.

PNUT’s market cap rose sharply, capturing the interest of the broader crypto community. However, the momentum didn’t last indefinitely. As media coverage expanded and the coin’s popularity spread, early buyers started cashing in on their gains, leading to a drop in both the price and market cap. The current market cap now sits below the peak, showing the effects of profit-taking.

Despite the decline, the coin’s supporters believe that PNUT still has growth potential. Should it regain its previous momentum, PNUT might even surpass other animal-themed meme coins, such as Moo Deng (MOODENG). The future remains uncertain, but the recent surge shows how quickly sentiment can shift in the meme coin space, especially when fueled by high-profile comments from figures like Elon Musk.