PEPE experienced a notable surge of 20% on January 2, 2026, driven by a bullish forecast from trader James Wynn, who predicted that the token could achieve a market capitalization of $69 billion by the end of the year.
At the time of Wynn”s prediction, PEPE“s market cap was approximately $1.7 billion, indicating a potential increase of nearly 35 times its current value. Wynn expressed confidence in the ongoing bull market, suggesting that PEPE might lead the way for meme coins as capital flows into top-tier tokens and fundamentally sound altcoins.
Wynn”s comparison of PEPE to Shiba Inu (SHIB) is particularly noteworthy. He pointed out that SHIB skyrocketed from a market cap of $3.5 billion to $41 billion in less than a month during the previous cycle. According to Wynn, PEPE exhibits stronger social engagement metrics than SHIB, including heightened activity on social media and frequent mentions across exchanges.
Additionally, Wynn noted that PEPE benefits from promotional use by various platforms, which enhances brand engagement and attracts new users. He asserted, “If SHIB can reach $41 billion, PEPE should be able to surpass it.”
Following Wynn”s announcement, PEPE“s trading volume exceeded $600 million, marking its highest 24-hour volume in over a month. This surge reflected significant retail interest in the asset, fueled by the renewed spotlight on meme coins as 2026 commenced.
Market analyst SΞA indicated that part of this volume increase could be attributed to U.S. tax-loss harvesting, where investors, having sold assets at year-end for tax purposes, might have re-entered the market at the start of the new tax year.
Alongside PEPE“s impressive gains, other meme coins also experienced short-term increases. Floki rose by 10%, while Milady Cult Coin (CULT) saw its value double after Ethereum co-founder Vitalik Buterin changed his avatar to a Milady-themed image.
Despite the recent uptick, many meme coins are still significantly down, with declines of 70% to 90% from their peaks in 2025. Data from CryptoQuant reveals that memecoin dominance remains low, leading some analysts to argue that there is no strong recovery signal at this time.
Investor sentiment remains mixed. Trader CRG cautioningly noted that Bitcoin has not yet displayed clear strength, warning that the market could reverse swiftly. This perspective reflects the ongoing uncertainty regarding the sustainability of meme coin rallies in the current cycle.
The discussion surrounding meme coins remains vibrant, with some market participants believing these tokens are crucial for attracting retail investors and generating trading volume, while others prioritize traditional projects with clearer fundamentals. PEPE“s recent rally has once again positioned meme coins at the forefront of cryptocurrency conversations as 2026 unfolds.
