Death of famous squirrel sparks scandal and meme coin rally: What’s going on?

The tragic death of a famous internet squirrel Peanut has caused controversy in the United States. Its owner said authorities took the animal away from him and forcibly euthanized it.

The story has sparked a surge in interest in the crypto community for the Solana blockchain meme coins based on the squirrel.

Internet star seized from owner, Musk blames Democrats

Peanut’s owner, Mark Longo, ran a popular Instagram account sharing moments from his pet’s life. His page has over 600,000 followers, and videos of the squirrel often go viral. Longo rescued him about seven years ago after witnessing a car accident that killed Peanut’s mother. Given his injuries, Longo decided that Peanut would not be able to survive in the wild, and he took the squirrel under his wing.

However, after several anonymous complaints, the New York City Department of Environmental Conservation visited his home and confiscated Peanut and a raccoon named Fred. Longo said the search of his farm, P’Nuts Freedom Farm, lasted five hours. The animals were later allegedly forcibly euthanized on suspicion of rabies.

The incident caused widespread public outcry, especially among animal rights activists and ordinary people. Billionaire Elon Musk also commented on the situation, calling the authorities’ actions “insane and cruel” and suggesting to vote for Donald Trump.

Posts began appearing on social media in memory of Peanut, with users demanding that NYSDEC officials be held accountable, claiming that the squirrel lived in perfect conditions and did not pose a danger to people, expressing doubts about the rabies information.

Peanut sparks meme coin rally

The situation surrounding Peanut has attracted the attention of the crypto community. In response to the news, tokens dedicated to this animal began to appear on the network. According to the DEX Screener platform, the number of Solana-based meme coins associated with the squirrel has reached dozens.

Monitoring resources report that the market capitalization of many of these coins has rapidly increased to several million dollars. At the same time, two thematic meme coins entered the top ten leaders in daily trading volume on DEX Screener.

One prominent leader was the Peanut the Squirrel meme coin (PNUT), which reached a trading volume of $300 million and 200,000 transactions in just two days. At its peak, its market capitalization was $120 million.

Peanut’s popularity also served as an impetus for the emergence of similar tokens on other blockchain platforms. Thus, another Peanut-themed meme coin appeared on the BNB Smart Chain, which reached a valuation of $80 million and exceeded $110 million in trading volume. Despite being a new token, it has quickly gained attention.

There has also been a significant increase in interest in a token dedicated to another deceased animal, Fred the Raccoon. The meme coin First Convicted Raccoon (FRED) has reached $83 million in trading volumes and 150,000 transactions in just a few days.

However, at the time of writing, the hype around meme coins has significantly died down. For example, First Convicted Raccoon (FRED) has fallen by 85% in the last 24 hours, and its market cap has fallen to $106,000.

That could all change soon

The phenomenon of viral events being converted into blockchain assets is nothing new. However, the success of tokens associated with Peanut and Fred highlights how closely the meme coin market is tied to social media trends and public emotional reactions to events.

While platforms like Instagram and X have become the main channels for spreading the story of Peanut and Fred, decentralized systems like Solana have allowed fans to translate their emotions into financial assets, creating a new form of self-expression through digital ownership.

However, experts warn that the upcoming U.S. elections could unexpectedly impact the meme coin market. Analysts predict possible volatility as investors react to political events. Experts note that the crypto market, including niche instruments like meme coins, often responds to changes in public sentiment caused by political factors.

Positive results for cryptocurrency supporters could increase investment, positively impacting popular tokens like Dogecoin (DOGE) and Shiba Inu (SHIB). On the other hand, tighter regulations or policies unkind to cryptocurrencies could reduce interest in speculative investments and cause prices to fall as traders seek more reliable assets.

Unlike traditional financial instruments, meme coins are particularly vulnerable to social influences and internet settings that can change based on political events. Since market uncertainty often leads to high price volatility, meme coins are no exception, given their speculative nature and active community participation.

With the U.S. elections approaching, crypto enthusiasts and meme coin investors will likely become more attentive to regulatory changes. Analysts advise holders of such tokens to be prepared for possible fluctuations and investors to pay attention to political signals, as they can serve as early indicators of market directions after the elections.