PEPE posted gains exceeding 20% on Jan. 2 following a market capitalization forecast from Hyperliquid trader James Wynn, who predicted the meme coin could reach $69 billion by year-end. The rally pushed PEPE's 24-hour trading volume above $600 million, the highest level in a month.
What Happened: Price Surge
Wynn posted his prediction when PEPE's market capitalization stood at approximately $1.7 billion, stating the token could multiply nearly 35 times from current levels or he would delete his account.
He compared PEPE to SHIB, which surged from $3.5 billion to $41 billion in under one month during the previous cycle, noting that PEPE's social metrics are significantly stronger.
The trader previously identified PEPE at a $600,000 market cap and reportedly earned tens of millions on the trade, with all activity recorded on-chain. His forecast energized the investment community and triggered heavy buying, though he has suffered multiple liquidations on leveraged long positions since July.
Analyst SΞA attributed the rally to U.S. tax-loss harvesting, explaining that investors who sold at year-end to convert paper losses into realized losses rushed to repurchase positions as the new tax year began.
Also Read: Jesse Eckel Forecasts Bitcoin Will Peak Between $170K And $250K During 2026
Why It Matters: Meme Season
Several other meme coins posted strong gains at the start of 2026, with Milady Cult Coin (CULT) doubling after Vitalik changed his avatar to a Milady image and Floki rebounding 10%.
Investor POΞ predicted a "full blow meme season loading," noting that PEPE typically leads bullish meme indicators.
However, most meme coins remain down 70%-90% from their peaks last year, and CryptoQuant data show memecoin dominance at low levels with no clear recovery signs.
Investor CRG said Bitcoin has shown no strength yet, warning the market could reverse quickly.
The meme coin narrative continues to spark debate between investors focused on fundamentals and those who argue meme coins occupy a central position in the attention economy by attracting retail investors and driving overall market capitalization growth.
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