The recent hype around the PNUT memecoin, inspired by Peanut the Squirrel, a popular pet whose seizure and death sparked outrage, shows the power of social media and celebrity endorsements. PNUT quickly surged after its launch on the Solana blockchain, partially due to public support from Elon Musk, who used the event to comment on government overreach. This endorsement, alongside a coincidental tie-in with U.S. election narratives, pushed PNUT’s value up rapidly, reaching a peak market cap of over $130 million. However, this attention-driven momentum quickly turned, as traders began to sell off, leading to price volatility and a drop in value.

Whether PNUT can sustain this hype depends on its ability to keep public interest and engagement alive, which can be challenging without a long-term value proposition. Meme coins like PNUT often rely heavily on social trends, and their prices are notoriously volatile, with some seeing rapid declines after initial hype fades.