Introduction
In the current cryptocurrency market, the power of social media is becoming increasingly prominent, especially as major political events approach. Recently, the rapid rise of the Peanut the Squirrel (PNUT) token has not only been an emotional response to the tragic fate of a pet squirrel, but also the result of a confluence of politics, public opinion, and investment sentiment. With the approaching U.S. presidential election, Peanut's story has sparked public outrage through social media, driving a surge in PNUT trading volume to $150 million in a short period of time. This phenomenon reflects society's strong focus on government actions and the crypto market's sensitive reaction to political dynamics. Meanwhile, Trump-related meme coins have also experienced significant volatility, indicating the crypto community's close attention to the election outcome. In this complex environment, how investors can formulate strategies to cope with the rapid changes in the market has become a worthy question to ponder.
What is the PNUT Coin
PNUT is a Solana blockchain-based meme coin that originated from the story of social media celebrity Peanut the Squirrel. Recently, Peanut's unfortunate incident has sparked public outrage, leading to a surge in PNUT trading volume to $150 million in a short period of time. The trigger for the event was the New York Department of Environmental Conservation (DEC)'s seizure and euthanization of Peanut and its companion raccoon Fred, citing rabies, which deeply saddened its owner Mark Longing.
Longing launched a strong opposition to the DEC's decision on social media, which attracted widespread attention, especially with the support of tweets from Tesla and SpaceX CEO Elon Musk. Musk criticized the decision and mentioned PNUT, further increasing public attention to the incident. Influenced by social media, PNUT's price temporarily soared to $0.14, but later retreated.
The rise of PNUT is not only an emotional response to the Peanut story, but is also closely related to the upcoming U.S. presidential election. Some politicians have politicized the event, viewing Peanut's fate as a complaint against government actions. Although PNUT's market capitalization has retreated after the hype, the story behind it and the discussion it has sparked have made it a unique phenomenon in the cryptocurrency market, highlighting the profound impact of social media on market dynamics.
The Explosion of Peanut Coin and Musk's Support
Last week, Elon Musk took to social media to condemn the New York State Department of Environmental Conservation's extreme measures against Peanut and Fred due to rabies, triggering a massive buying frenzy of the PNUT token. Within just a few days, the trading volume of this Solana-based meme coin soared to $150 million, becoming a hot topic on the internet.
Peanut's story has touched many people, as the pet has accumulated over 500,000 followers on social media. Musk's support further drove the demand for PNUT, with its price reaching $0.14 at one point. Musk tweeted: "The government should not be allowed to barge into your home and kill your pet! This is so wrong." His voice resonated widely on the internet, making PNUT a symbol of a social movement.
However, as the market hype gradually cooled down, PNUT's market capitalization began to decline. According to Gecko Terminal data, the token's market value has dropped to $49 million after the initial frenzy, with the price falling to $0.04. Nevertheless, Peanut's story continues to inspire people on social media, and Longing has stated that he will set up a fundraising campaign for Peanut to maintain its influence in the community.
The Rebound of Trump Meme Coins
Meanwhile, Trump-related meme coins have also experienced significant volatility. Recently, in the market, with the fluctuations in Trump's election prospects, the cryptocurrency market has also responded accordingly. BTC once surged to $73,600 before retreating to $67,500, indicating that investors' sensitivity to risk has increased. However, Trump-related meme coins such as $TRUMP and $MAGA have experienced a strong rebound.
Data shows that the price of $TRUMP has risen by 25.4% to $3.36, while $MAGA has risen by 47% to $0.0002029. This rebound phenomenon suggests that the crypto community's confidence in Trump's victory has rebounded. In the face of a tight election, investors seem to be more inclined to bet on Trump's victory.
Latest Price Trend of TRUMP (MAGA)
The Correlation between Election Prospects and the Market
As the election day approaches, the crypto community is closely monitoring the changes in the prediction markets. On Polymarket, Trump's winning probability has risen from 54.9% to 56.2%, while Harris' probability has dropped to 44%. This change reflects the market's growing confidence in Trump's victory.
However, according to the polls by The New York Times and Siena College, although Trump is leading in some states, Harris still maintains a narrow lead in several swing states. The polls show that Harris is slightly ahead of Trump in Nevada, North Carolina, Wisconsin, and Georgia, while the two are nearly tied in Michigan and Pennsylvania. This makes the final outcome still uncertain, and election forecasting expert Nate Silver believes it is currently difficult to determine the eventual winner.
Investment Strategies and Risk Management
In the current political climate, Trump-related meme coins such as $TRUMP and $MAGA have experienced significant rebounds due to fluctuations in election prospects, indicating that investors' confidence in Trump's victory is gradually increasing. Based on market dynamics, consider investing in these meme coins when their prices are at low points, so as to potentially profit if the election continues to tilt in Trump's favor.
On the other hand, for investors who are bullish on Harris, $KAMA as another meme coin can be considered for adding positions during market corrections. Although the current market has increased its confidence in Trump, Harris still maintains a narrow lead in some swing states, so entering the market at relatively low prices may provide investors with good risk-return potential.
Regardless of the investment strategy chosen, it is necessary to remain vigilant, closely monitor political dynamics and market reactions, and ensure the rationality of investment decisions. Given the high volatility of the meme coin market, it is also recommended to set stop-loss points to reduce potential risks. In the complex election environment, developing a flexible investment strategy is key to coping with market changes.
However, Coin World reminds readers that the price fluctuations of meme coins are severe, and the identity of the issuers is often unclear, so investors need to exercise caution when investing to avoid large price swings due to election results.
Conclusion
The rise of the Peanut coin and the rebound of Trump-related meme coins fully demonstrate the power of social media in the cryptocurrency market and the profound impact of political events on the market. In this context, investors need to closely monitor political dynamics and market reactions, and formulate corresponding investment strategies. At the same time, they also need to be aware of potential risks and maintain a rational and cautious attitude. As the U.S. presidential election approaches, the market will continue to be influenced by changes in the election prospects, which is worth close attention for every investor.
