What is PNUT and why has its price tripled in the last week?

Peanut the Squirrel (PNUT), the Solana-based memecoin, has tripled in price in a week, reaching nearly $430 million in market capitalization. 

PNUT, the native token of Peanut the Squirrel, has captured the attention of the crypto market after experiencing a 180% price increase in just seven days, boosting its market capitalization to nearly $430 million. This memecoin, which emerged as a viral project inspired by a real-life pet case, has quickly established itself within the competitive world of Solana-based cryptocurrencies. 

PNUT's meteoric rise has sparked the interest of both investors and traders in the crypto world, as reflected in the current trading volume of this digital asset. In this article, we explore what exactly PNUT is, its utility within the crypto ecosystem, its recent evolution in terms of price and volume, and the factors that have driven its popularity in the memecoin market.

What is PNUT and what use does it have in the crypto ecosystem?

Peanut the Squirrel, known as PNUT, is a digital token based on the Solana blockchain, a platform known for its high speed and low transaction costs. PNUT falls into the segment of memecoins, cryptocurrencies that generally emerge as viral projects or with humorous themes and often generate highly active communities on social media. What sets PNUT apart is its origin: It was created in response to a high-profile case in New York where a pet, a squirrel named Peanut, was confiscated and subsequently euthanized., which generated a movement of support and environmental awareness. This background has given UNFPA a narrative that connects with a committed community, beyond the mere speculative aspect for which memecoins are known.

In terms of its utility, UNCT not only functions as an asset for trading and speculation, but also seeks to encourage community participation and support causes related to animal protection and the environment, although these functions are still under development. 

Additionally, being based on Solana, PNUT benefits from an infrastructure that enables fast and cost-effective transactions, facilitating its adoption for payments, exchanges, and potential integrations into decentralized applications. Its entire supply is fully circulating, eliminating the risk of dilution from future token issuance, a valued feature by investors seeking stability in the offering.

Recent developments: price, volume, and market capitalization data

In the last week, PNUT has experienced spectacular growth, with its price increasing by 180%. It is currently valued at around $0,445 per token, with a market capitalization approaching $430 million, a significant jump from previous weeks when its value was considerably lower. This increase has been accompanied by an increase in trading volume, which hovers around $800 million daily, reflecting growing interest from the crypto community and new investors looking to take advantage of the bullish wave.

Historically, PNUT reached an all-time high of approximately $2,47 in November 2024, but subsequently suffered corrections and consolidations. However, its recent rally has put this memecoin back on the market's radar, especially at a time when memecoins are gaining traction again. 

The fact that PNUT has a limited and already fully circulating supply contributes to the fact that buying pressure has a more direct impact on its price.

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On the other hand, market analysts suggest that this surge may be related to a combination of factors, including the growth of its community, interest in Solana-based tokens, and the overall recovery trend in the crypto market. Furthermore, the narrative behind PNUT and its virality on social media have played a crucial role in attracting attention and capital. If its momentum continues, PNUT is expected to continue climbing the cryptocurrency market by market capitalization.

Why has PNUT tripled in price in the last week?

PNUT's spectacular price increase over the past week is due to several interrelated factors. First, the memecoin has capitalized on an emotional and viral narrative that has resonated on social media, generating a strong sense of community and support among its followers. This type of social momentum is crucial in the world of memecoins, where value is often tied to popularity and collective sentiment rather than technical fundamentals.

Additionally, PNUT benefits from the Solana ecosystem, which has gained recognition for its efficiency and scalability, attracting innovative projects and users seeking alternatives to more congested and expensive blockchains. The combination of a robust platform and an active community has created an environment conducive to PNUT's rapid growth.

The rise in the value of this token is also related to the broader crypto market, which is showing signs of recovery, with renewed interest in memecoins after periods of volatility. 

PNUT has successfully capitalized on this situation, positioning itself as an attractive option for those seeking tokens with rapid growth potential. Although these types of assets carry high risks, the combination of technical, social, and market factors has caused PNUT to triple its price in just one week, consolidating its position as one of the most prominent memecoins of the moment.

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.