This cryptocurrency surges 67% after the holidays and VanEck explains why

One of the leading cryptocurrencies within the Top 100 has taken the lead in the market's price recovery after the year-end break.

The cryptocurrency market has begun 2026 with a capital rotation that has surprised many with its direction. While major assets like Bitcoin are consolidating, with single-digit gains, one Top 100 cryptocurrency has capitalized on the renewed appetite for risk, posting a return that far exceeds the market average. 

After a year-end marked by uncertainty, this token has extended its winning streak with a weekly increase of 67%, becoming one of the undisputed protagonists of the first week of January.

Is Pepe (PEPE)The Ethereum-based memecoin inspired by the famous internet frog has seen a price increase. Although its movement has stabilized over the last 24 hours with a moderate rise of 1,31%, the structure of its weekly recovery suggests a profound trend reversal. According to experts, this price surge is due to a confluence of technical factors, including... short squeeze in the derivatives market and a capital flow dynamic that several institutional analysts had already anticipated.

What drives the price of PEPE?

PEPE's rise is based on four fundamental pillars that have interacted simultaneously since January 1st of this year. First, there has been a sectoral reactivation. 

The total market capitalization of memecoins has increased by over $10.000 billion in just a few days. CryptoQuant data reveals that PEPE's dominance has rebounded from an all-time low of 3,2% recorded in December, a level that has historically acted as a floor before significant rebounds.

From a technical perspective, the asset has been at the center of a key breakThe price managed to recover the $0,0000072 level, an area that acted as resistance in the "Head and Shoulders" pattern observed in 2025 and which has now turned into support. 

The third factor lies in the derivatives market. Open interest in PEPE futures It surged 111%, reaching $636 million according to CoinGlass. This increased leverage has amplified gains by liquidating short positions, though it also exposes the asset to greater volatility.

At the same time, an interesting divergence is observed in the whale activityOn-chain data indicates that large holders have distributed approximately 2,86 trillion tokens—around $20 million—since the end of December. However, this selling pressure has been efficiently absorbed by a new wave of retail demand, allowing the price to remain resilient despite institutional profit-taking.

The January Effect and VanEck's institutional vision

Beyond the charts, for experts, PEPE's current behavior validates the theories about annual liquidity cycles. Matt SigelSigel, head of digital asset research at VanEck, offered a macroeconomic explanation for this phenomenon, which he called the "January Effect." According to Sigel, assets that underperformed or were negative at the end of the previous year—especially those with lower capitalization and liquidity—tend to experience the most aggressive rebounds at the start of the new fiscal year.

This theory is based on investor psychology and tax strategy. During December, many traders sell assets at a loss to offset taxes, artificially depressing prices. However, at the beginning of January, this pressure disappears and capital returns seeking undervalued high-risk opportunities.

And PEPE isn't alone in this market dynamic. Other assets in the memecoin sector, such as FLOCIA, Dogwifehat y FartcoinThey have registered double-digit increases in recent days, following the same rotation pattern. Similarly, more established cryptocurrencies in this sector, such as Dogecoin They rose by about 12%, while Shiba Inu y BONK They reported gains of around 13%. 

It is worth noting that these same assets were the hardest hit in terms of downward volatility following the massive sell-off event on October 10, reinforcing the idea that the market is reassessing prices after a period of excessive capitulation.

What is PEPE? From viral meme to key asset in the digital economy

PEPE is one of the memecoins that best encapsulates the speculative pulse of the crypto market. It emerged in April 2023 without a well-developed technological proposal or defined objectives, but it achieved something that other, more ambitious projects don't always manage: a sustained presence and an indirect function as a liquidity indicator within the Ethereum network.

Inspired by the iconic meme Pepe the FrogPEPE operates as an ERC-20 token, leveraging the security and versatility of the Ethereum blockchain to facilitate global exchange. Unlike traditional cryptocurrencies that base their valuation on technical utility or solving infrastructure problems, PEPE's intrinsic value lies in its undeniable cultural roots and the strength of its decentralized community. Its evolution has marked the maturation of the memecoin sector, transforming them from mere viral phenomena into liquid financial instruments that respond to macroeconomic trends.

Through deflationary mechanisms designed to progressively reduce its circulating supply, the protocol seeks to foster long-term stability. Today, by remaining among the projects with the highest capitalization and volume, PEPE represents a new logic in the digital economy. It demonstrates that attention and shared narratives can be transformed into real value, and that community dynamics have the power to challenge traditional crypto market structures.