PEPE Surges by 20%: What’s Driving the Rally?
The crypto market has kicked off 2026 with a bang, particularly for PEPE, the meme-inspired cryptocurrency. Known for its quirky roots as a token paying homage to Pepe the Frog, PEPE’s price soared by over 20% on January 2nd. This rally comes amid a bullish prediction from trader James Wynn, who forecasts a jaw-dropping market cap of $69 billion for the token by year-end.
James Wynn’s Bold Prediction
James Wynn, a renowned trader on the crypto platform Hyperliquid, recently compared PEPE’s potential growth to the explosive rise of SHIB during the previous market cycle. SHIB’s market cap skyrocketed from $3.5 billion to $41 billion in under a month, and Wynn believes PEPE has even stronger social momentum.
According to Wynn, “Now, I’m calling PEPE to go from $1.7 billion to $69 billion+ in 2026, or I delete my account.” Following his statement, PEPE’s market capitalization surged to nearly $2 billion. If Wynn’s prediction proves accurate, PEPE’s price could multiply 35 times from current levels.
The Role of Tax-Loss Harvesting
Part of this rally may be attributed to year-end tax strategies. Analyst SΞA explained that U.S. investors engaged in tax-loss harvesting, selling off underperforming assets in late 2025 to offset gains and reduce their tax liability. As the new tax year began, these same investors repurchased their positions, leading to a surge in demand for PEPE and other notable meme coins. This phenomenon resulted in PEPE’s 24-hour trading volume exceeding $600 million, its highest in a month.
The Broader Meme Coin Ecosystem
Early 2026 has brought gains for other meme coins as well. Milady Cult Coin (CULT) doubled in price following a statement from Ethereum co-founder Vitalik Buterin, while FLOKI experienced a 10% rebound. However, despite these promising signs, the broader meme coin sector remains subdued, with many tokens still down 70–90% from their 2025 peaks.
As investor POΞ put it, “Pepe always leads for bullish meme indicators,” sparking discussions about meme coin dominance in the attention economy. Critics, however, caution that broader altcoin weakness could undermine the current rally.
Should You Invest in PEPE?
The rally has rekindled debate about meme coins’ role in the crypto market. While some investors dismiss them as speculative assets, others believe they help attract retail interest and contribute to overall market expansion. For those considering investing in PEPE, it’s essential to stay informed, conduct independent research, and approach the volatile meme coin landscape with caution.
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Disclaimer: This article provides informational content and does not serve as financial advice. Always consult a professional before making investment decisions.
