The crypto market kicked off 2026 with excitement. On the second day of the year, PEPE, the meme coin inspired by Pepe the Frog, jumped over 20%. This move put PEPE back in the spotlight and sparked talk about the return of ‘meme season.’ The surge happened as risk appetite is coming back, volatility is stable, and traders are once again exploring riskier bets.
For traders and investors, PEPE’s sudden breakout is not just another short-term price spike. It is a signal; one that may reflect deeper shifts in sentiment as the market transitions from caution to selective risk-taking.
A Strong Start to 2026 for PEPE
PEPE started 2026 strong. After a quiet end to last year, the token surprised everyone by rising more than 20% in one day. As buyers jumped in, trading activity picked up fast.
According to live market data, PEPE is currently trading at approximately $0.000006 per token, giving it a market capitalization of around $2.37 billion. Over the past 24 hours alone, trading volume has reached $1.27 billion, highlighting renewed interest from both retail and short-term traders. PEPE is up nearly 36% in the last 24 hours, with a circulating supply of 420.69 trillion tokens.
These numbers suggest that money is flowing back into meme coins, at least for now, and that PEPE is once again leading the way for risky assets.
What Triggered the Sudden Breakout?
Several things came together to drive PEPE’s sharp rise. As Bitcoin’s price leveled off, traders started looking for alternative assets. At the same time, social media buzz around meme coins grew, which helped push prices higher.
One of the most influential catalysts came from James Wynn, a well-known trader on the Hyperliquid platform. Wynn recently predicted that PEPE could reach a market capitalization of $69 billion by the end of 2026, a forecast that quickly spread across crypto-focused social channels.
Wynn is not new to PEPE. When the token’s market cap stood at roughly $600,000, he publicly argued that it could grow into a multi-billion-dollar asset. On-chain data shows that his early positions generated tens of millions of dollars in profits, lending credibility to his latest outlook.
In his latest analysis, Wynn compared PEPE’s situation to Shiba Inu’s big rally, when SHIB jumped from about $3.5 billion to $41 billion in less than a month during the last cycle. He pointed out that PEPE’s social engagement is now even stronger than SHIB’s was at a similar point, hinting at more room for gains.
Price charts reacted quickly. Shortly after Wynn shared his prediction, PEPE climbed nearly 20%, pushing the market to respond fast. If Wynn’s forecast comes true, PEPE would have to grow about 35 times from here; a bold idea that excites some and worries others.
Pepe’s Price Momentum in the last 24 hours
Image source: Binance
Signals From the Broader Meme and Altcoin Market
Several meme coins posted strong gains alongside it. Milady Cult Coin (CULT) doubled in value after Ethereum co-founder Vitalik Buterin changed his social media avatar to a Milady image, while Floki rebounded by roughly 10%.
Many analysts called this a ‘full-blown meme season loading,’ noting that PEPE has often led the way for bullish meme trends. Still, not everyone is optimistic.
But most meme coins remain 70% to 90% below their previous peaks, according to aggregated market data. Metrics in top live pricing sites show meme coin dominance at relatively low levels, with no confirmed long-term recovery trend.
Investor CRG added a note of caution, warning that Bitcoin still hasn’t shown steady strength. If momentum slows, the whole market could pull back.
This tension has brought back an old debate. Some investors say meme coins have no real value and are just speculation. Others argue that meme coins are important for attracting new users to crypto and helping the market grow over time.
Speculative Altcoins Begin to Outperform
Looking at the bigger picture, PEPE’s move is part of a larger trend. When Bitcoin’s price stays flat, money often shifts into riskier altcoins. Recent data suggests this is happening again.
The Altcoin Season Index shows that a growing number of altcoins are outperforming Bitcoin during its consolidation phase.
Analysts say that liquidity might be improving after a long period of tighter money. Investors are watching the U.S. Federal Reserve for signs that this could end, which would likely help riskier assets.
Macro investor Raoul Pal suggests putting 5% to 10% of a portfolio into higher-risk altcoins during these times. He believes the biggest gains often come before everyone turns fully optimistic.
Why Meme Coins Thrive in This Environment
Meme seasons usually come back when there’s a lot of uncertainty and stories matter more than facts. During these times, traders are motivated by fear of missing out, quick gains, and social approval.
Meme coins do well because they are easy to understand, easy to trade, and stir up strong feelings. They attract attention when markets are uncertain, giving quick results that appeal to both new and seasoned traders.
This doesn’t mean meme coins are safe. They react quickly to changes in mood, rising fast when people are confident and dropping just as quickly when confidence fades.
Retail Traders and the Power of Community Momentum
Retail traders are still the main force behind meme coin rallies. Online groups on platforms like X, Telegram, and Discord spread stories quickly, often making predictions come true just by talking about them.
Social analytics data shows that mentions of PEPE spike when its price goes up, highlighting the strong link between attention and price moves.
This community-driven energy helps meme coins do well even without strong fundamentals. Here, engagement matters more than earnings.
Volatility Remains the Defining Risk
Even with the new excitement, volatility is still a big risk. Meme coin rallies are often quick and don’t last long, so latecomers can get caught by sudden drops.
Experts say it’s important to manage your position size, know how easy it is to trade, and keep your expectations realistic. Big gains are possible, but losses can be just as large.
Right now, the market rewards quick action and discipline, not just following the crowd.
What Comes Next for PEPE and Meme Coins?
Whether PEPE can keep up its momentum depends on a few things. Ongoing trading volume, overall market mood, and what Bitcoin does next will all be important.
If risk appetite persists, people keep seeking risk, and meme coins might keep rising. But if the economy tightens or confidence drops, these rallies could end just as fast. watching closely.
Meme Season Reloaded or Just a Spark?
PEPE’s 20% jump has restarted the conversation about meme season and speculative money moving around. It shows renewed interest, more engagement, and a market that is willing, at least for now, to take risks again.
It’s still unclear if this is the start of a lasting trend or just a brief spark. What’s clear is that meme coins keep shaping crypto cycles, not just with fundamentals, but also with attention, psychology, and group behavior.
As 2026 unfolds, PEPE’s latest rally may be remembered either as the opening chapter of a new wave of speculation or as a reminder of how quickly moods can change in crypto markets.