The Peanut the Squirrel token (PNUT) has emerged as the leading meme coin on the Solana blockchain, reaching a peak market cap of $120 million and a trading volume of $300 million within just 48 hours.

This surge in PNUT's price was triggered by comments from Tesla CEO Elon Musk regarding the death of Peanut, a squirrel that was in the custody of New York's Department of Environmental Conservation (NYS DEC).

Despite the initial excitement, the market cap of PNUT later declined to approximately $93.98 million as early investors began to take profits, causing the token's price to drop to $0.094.

Musk, along with other public figures, criticized the NYS DEC's actions, labeling them as 'mindless' and 'heartless', which further fueled the buying frenzy for PNUT.

His condemnation of the officials' actions resonated with the public, reminiscent of past instances where celebrity endorsements have significantly influenced cryptocurrency prices.

As media coverage intensified, large investors, known as whales, began purchasing PNUT, contributing to the heightened market activity.

Early investors quickly invested thousands of dollars following Musk's tweet, which accelerated PNUT's price increase.

Musk's strong remarks about the NYS DEC, calling it a 'mindless and heartless killing machine', incited aggressive buying among meme coin traders.

Peanut's owner, Mark Longo, expressed his heartbreak over the situation on social media, criticizing the authorities for their handling of the squirrel.

This incident underscores how social media trends can significantly impact cryptocurrency markets, as evidenced by the ongoing demand for viral tokens like PNUT.

Market analysts are optimistic about PNUT's future, predicting a potential price target of $200, bolstered by strong technical indicators and community support.

In the broader meme coin landscape, Pepe Unchained (PEPU) has also gained traction, raising over $24 million and planning to launch its own Layer-2 network to improve transaction efficiency.