The year 2026 has commenced with notable momentum for PEPE, the meme coin drawing inspiration from Pepe the Frog. Just two days into the new year, PEPE experienced a remarkable surge exceeding 20%. This rally raises questions about its sustainability and the potential for an emerging meme season in early 2026.
James Wynn, a prominent trader associated with Hyperliquid, has made headlines by predicting that PEPE could achieve a staggering market capitalization of up to $69 billion by the conclusion of 2026. This bold forecast has invigorated the investment community, prompting significant buying activity.
Wynn”s confidence in PEPE is underscored by his previous success; he recognized its potential when its market cap was merely at $600,000. He claims to have profited handsomely, reportedly earning tens of millions from trading activities that are fully documented on-chain. In his recent analysis, Wynn draws parallels between PEPE and SHIB, which saw its market cap soar from $3.5 billion to $41 billion within a remarkably short timeframe during the last cycle. He argues that PEPE“s social metrics are even more robust, which could pave the way for similar explosive growth.
Wynn stated, “Now, I”m calling PEPE to go from $1.7 billion to $69 billion+ in 2026 or I delete my account.” Following the release of his prediction, PEPE“s price jumped nearly 20%, with its current market capitalization hovering around $2 billion. If Wynn”s forecast comes to fruition, this could imply almost a 35-fold increase in price.
However, Wynn”s journey with PEPE has not been without challenges. During the downturn that began last July, he faced significant setbacks, including multiple liquidations due to highly leveraged long positions.
Another analyst, SΞA, attributes the recent rally to the implications of U.S. tax regulations, particularly tax-loss harvesting strategies. As 2025 came to a close, many investors found themselves with unrealized losses and opted to sell at the last moment to minimize their tax liabilities. With the onset of the new tax year in 2026, bullish investors eagerly returned to PEPE, driving its 24-hour trading volume to surpass $600 million — the highest it has been in the past month, as per data from CoinGecko.
Additionally, PEPE is not alone in its resurgence. Various other meme coins have also experienced significant price increases at the beginning of 2026. For instance, Milady Cult Coin (CULT) saw its price double after Ethereum co-founder Vitalik Buterin remarked that “Milady is back” and updated his profile picture to feature a Milady image. Similarly, Floki rebounded by 10% during this period.
Investor POΞ optimistically declared, “God candles PEPE. Full blow meme season loading. PEPE always leads for bullish meme indicators.” Despite these positive movements, a majority of meme coins remain down significantly, with losses ranging from 70% to 90% compared to their all-time highs last year.
Data from CryptoQuant highlights that the dominance of meme coins is currently low, indicating a lack of clear recovery signals. Investor CRG noted, “”Memecoins died” → everything died. Literally all altcoins died, not just memes. Whether this bounce sticks remains to be seen. Bitcoin has not shown any strength yet, so the market could easily revert. However, memes are typically the first to react when altcoins display any signs of risk-on sentiment.”
The ongoing discussion surrounding meme coins reflects diverging viewpoints among investors. While some adopt a cautious stance, focusing on altcoins with solid fundamentals, others assert that meme coins hold a vital role in the attention economy, attracting retail investors and contributing to overall market capitalization growth.
