SuperEx丨The ‘Musk Effect’ Strikes Again, Sending Animal Meme Coins Soaring

4 min readNov 15, 2024

#SuperEx #Musk #Meme

Years ago, DOGE experienced a massive surge in value driven by Elon Musk’s tweets, creating a legendary rise for animal-themed meme coins. This phenomenon, dubbed the “Musk Trade,” has reemerged with the explosive popularity of PNUT, a Solana-based meme token. PNUT skyrocketed to fame after being listed on Binance on Monday, with its market cap soaring to $1.5 billion. According to CoinGecko, the token surged 1,524% in the past week, currently priced at $1.65.

PNUT’s origin story is tied to a squirrel euthanized by New York authorities over rabies concerns. This incident sparked political controversy when Donald Trump and local Republican candidates criticized the Democrats for overreach, turning the squirrel into a rallying symbol for their cause. Elon Musk amplified this with multiple tweets, stating, “President Donald Trump will save the squirrel” and “A squirrel and a meme token saved America.” The combination of Musk’s influence, Trump’s involvement, meme culture, and political undertones has packed PNUT with compelling appeal.

The resurgence of the “Musk Trade” has once again captured the crypto world’s attention. Following Musk’s tweets about PNUT, this Solana-based meme token became a focal point on social media and markets, blending politics, entertainment, and finance into a viral trend.

The Social Wave of Meme Tokens

Meme tokens like PNUT are more than technical phenomena; they are deeply rooted in internet culture and collective sentiment. PNUT’s rise exemplifies this: a rabies controversy transformed a small squirrel into a political symbol. When Trump and Republicans framed it as an example of government overreach, it became a national talking point. Musk’s tweets elevated it further, turning a political dispute into a social media frenzy.

This is not an isolated case. DOGE pioneered the meme token craze, followed by Shiba Inu (SHIB). PNUT now demonstrates the enormous economic potential of cultural and social media-driven narratives in the crypto world. This shift highlights how digital assets are evolving from being technology-driven to culturally driven.

Musk’s Tweetonomics

Elon Musk’s role in crypto markets has been aptly described as “Tweetonomics.” Whether it was DOGE’s rise or now PNUT’s, Musk’s involvement consistently triggers significant market reactions. His massive following and ability to merge pop culture, current events, and financial topics result in unprecedented market participation. Musk’s tweets generate a “resonance effect,” where celebrity commentary aligns with public sentiment, amplifying it into market activity.

PNUT’s 1,524% surge in just seven days owes much to Musk’s frequent tweets, which added political and emotional significance to the token. For investors, Musk’s words are not just entertainment; they are actionable signals with tangible market implications.

Political Narratives and the Crypto Market

PNUT’s success is also tied to its unique political narrative. Amid escalating political battles between Republicans and Democrats during Trump’s era, the squirrel became a symbol of this rivalry. Against this backdrop, the emergence of the PNUT token satirized the political climate while offering supporters a way to engage with the narrative.

By combining political storytelling with meme token economics, PNUT’s development team attracted a broad user base, from casual investors to politically motivated participants. This dual appeal propelled its rapid rise, cementing its status as a new cultural icon.

A Market Hotspot with Stacked Buffs

PNUT’s success also rides on other crypto market trends:

1. Solana Ecosystem Growth: As a blockchain known for high-performance transactions, Solana has been attracting developers and capital, and PNUT’s rise further solidifies its ecosystem.

2. DeFi Popularity: PNUT’s liquidity mechanism and decentralized exchange support enable seamless trading, boosting its appeal.

3. Meme Culture’s Influence: PNUT’s rise proves meme culture remains a powerful tool to attract young, active crypto investors.

Conclusion

PNUT’s ascent underscores the tremendous power of social media and cultural narratives in the crypto market. As an asset that combines political relevance, celebrity influence, and technical innovation, PNUT offers not just investment opportunities but also valuable insights into the crypto industry’s future. In a rapidly evolving market, understanding and leveraging this intersection of culture and technology could be key to identifying the next big trend.