The controversial death of Peanut the Squirrel has ignited a sensational surge in memecoins themed around the beloved rodent on the Solana blockchain, with some tokens reaching market capitalizations exceeding $120 million.
Peanut, a pet squirrel with a significant online following, was confiscated and euthanized by New York’s Department of Environmental Conservation (DEC) on October 30, 2024, following complaints regarding alleged unsafe housing conditions. Mark Longo, Peanut’s caretaker and owner of the squirrel’s social media account, expressed his outrage on Instagram:
“Well internet, you WON. You took one of the most amazing animals away from me because of your selfishness. To the group of people who called DEC, there’s a special place in hell for you.”
Longo had rescued Peanut seven years prior after witnessing the squirrel’s mother get hit by a car. Due to Peanut’s injuries, he believed the animal could not survive in the wild and nursed him back to health.
The incident sparked widespread outrage, drawing criticism from high-profile figures such as billionaire Elon Musk, who labeled the government’s actions as “mindless” and “heartless.” The emotional response from the public has fueled discussions on social media platforms, amplifying Peanut’s story and leading to a surge in interest for related memecoins.
In light of Peanut’s newfound popularity, numerous memecoins have been launched on the Solana network. According to data from Dexscreener, several of these tokens have quickly risen to prominence in the DeFi market:
Peanut the Squirrel (PNUT), Launched just days ago, this token achieved a trading volume of nearly $300 million and recorded over 200,000 transactions. Its market capitalization peaked at $120 million before correcting to approximately $100 million.
In addition to Peanut-themed tokens, a memecoin based on Fred, a raccoon euthanized alongside Peanut, has also emerged. The token named First Convicted Raccoon (FRED) recorded nearly 150,000 transactions and a trading volume of $83 million, although it currently holds a market cap of only $8.2 million.
The rapid rise of these memecoins reflects the volatility and speculative nature inherent in cryptocurrency markets. Following the news about Peanut’s death, traders have flocked to capitalize on the emotional narrative surrounding these tokens.
A similar memecoin launched on the BNB Smart Chain achieved a market cap of around $80 million, with trading volumes surpassing $110 million.
The frenzy surrounding Peanut has not only highlighted the potential for viral events to drive speculative trading but also raised questions about the sustainability and ethical implications of such investments. The incident illustrates how quickly sentiment can shift in cryptocurrency markets based on social media narratives.
