PEPE token surged approximately 26% on January 2, trading near $0.000005106 as the meme coin started 2026 with sharp gains.
The frog-themed cryptocurrency's 24-hour trading volume exceeded $800 million, representing an increase of over 400% from the previous day.
Open interest in PEPE-linked futures contracts climbed 82% to approximately $446.5 million.
The rally marked a reversal from PEPE's downtrend since July 2025, when meme coins broadly declined amid reduced risk appetite in cryptocurrency markets.
What Happened
Social media activity contributed significantly to PEPE's price movement.
The official PEPE account posted "We ride at dawn" on January 1, which spread rapidly across cryptocurrency social media platforms.
Short liquidations totaled approximately $2.65 million over 24 hours as traders betting against PEPE were forced to close positions.
Overall liquidations reached $3.13 million, with roughly 83% coming from short positions.
Retail traders on Robinhood hold an estimated 8.3% of PEPE's total circulating supply.
Net buying activity showed inflows exceeding $3.25 million during the rally period.
PEPE's market capitalization climbed from approximately $1.72 billion to around $2.15 billion.
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Why It Matters
The volume surge indicates renewed speculative interest in meme coins following months of declining activity.
PEPE's derivatives activity expansion suggests traders are positioning for continued volatility rather than a sustained directional move.
The concentration of retail holdings on platforms like Robinhood demonstrates meme coins remain popular among individual investors despite institutional skepticism.
Short squeeze dynamics amplified the price move as forced buying from liquidations created additional upward pressure.
PEPE launched in 2023 and trades as an ERC-20 token on the Ethereum blockchain with no inherent utility beyond speculation and community engagement.
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