The Solana-based meme coin, Peanut the Squirrel ($PNUT ), experienced a significant price surge of over 20% following the announcement that Coinbase plans to include the token on its listing roadmap.
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Market Performance Highlights
The announcement drove PNUT’s price to $1.35, reflecting a 30% spike within 24 hours. The token’s market capitalization surged to $1.34 billion, surpassing other popular meme coins such as POPCAT and MOG COIN. Trading activity intensified during this period, with daily volumes reaching $1.5 billion, according to CoinMarketCap.
Coinbase and Other Listings
Coinbase’s decision to list PNUT has reignited interest in the meme coin sector. This follows earlier listings by Binance and Bitget, which also contributed to PNUT’s rapid rise in popularity.
Coinbase also announced the addition of Gigachad (GIGA), another Solana-based meme coin, to its listing roadmap. However, GIGA has not experienced the same market rally as PNUT.
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Background and Market Dynamics
PNUT gained widespread attention after a viral social media controversy featuring a squirrel mascot named "Peanut." The token had previously reached a peak market capitalization of $2.4 billion.
Launched in early November via the Pump.fun launchpad, PNUT saw immediate success, including a rapid listing on Binance. Following the Binance listing, the token’s value surged by 300%, hitting an all-time high of $2.44.
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Controversies and Challenges
Despite its success, the rise of PNUT and similar meme coins has not been without criticism:
1. Binance Criticism: Binance faced backlash for listing meme coins with low market capitalizations, with allegations of enabling pump-and-dump schemes. The exchange is also dealing with separate allegations of employee misconduct and bribery.
2. Pump.fun Scrutiny:
The Pump.fun platform, which hosted PNUT’s launch, has faced scrutiny for introducing a live-streaming feature that has allegedly been misused for financial scams.
Recently, Pump.fun blocked access to UK users following a Financial Conduct Authority (FCA) warning regarding unauthorized financial services.
Despite these controversies, Pump.fun has remained financially robust, generating $215 million in revenue and deploying over 3.8 million meme coins.
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Meme Coin Market Overview
Meme coins on the Solana network have seen a surge in popularity throughout 2024. According to CoinGecko, the collective market capitalization of Solana-based meme coins now stands at $20.5 billion. PNUT has solidified its position as the 9th largest meme coin, with a current market capitalization exceeding $1.2 billion.
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Conclusion
The inclusion of PNUT on Coinbase’s listing roadmap highlights the growing acceptance of meme coins by major exchanges, despite ongoing criticisms and regulatory scrutiny. PNUT’s rapid growth, fueled by viral marketing and strategic listings, underscores the evolving dynamics of the cryptocurrency market and the rising prominence of Solana-based tokens. As the meme coin sector continues to expand, the listing of such tokens on leading platforms like Coinbase reflects a broader trend of legitimization and mainstream adoption.
