Meme cryptocurrency PEPE surged 76% in the first week of 2026, becoming the biggest gainer among the top 50 cryptocurrencies by market capitalization.
The frog-themed token led a broader meme coin rally that saw BONK rise 52%, FLOKI gain 50%, and Pudgy Penguins climb 40%.
Trading volumes across major meme tokens exceeded $7.7 billion in 24 hours as speculative appetite returned to cryptocurrency markets.
What Happened
PEPE's rally began January 1, climbing from around $0.0000034 to over $0.0000059.
Open interest in PEPE futures doubled from $228 million to $470 million in four days.
Short liquidations exceeded $10 million on January 2, the largest single-day event in over a year.
One whale turned $58,700 into nearly $490,000 through a 10x leveraged position executed in late December.
Robinhood users now hold approximately 8.3% of PEPE's total supply.
Read also: Why a16z Crypto Just Bought $15M In BABY Tokens To Build Bitcoin Vaults
Why It Matters
Meme coins represented six of the top 10 gainers among the 100 largest cryptocurrencies in early January.
The rally occurred as Bitcoin consolidated above $90,000, prompting rotation into higher-volatility assets.
Technical indicators show PEPE entered overbought territory with RSI readings above 72.
Analysts noted meme coin rallies typically coincide with periods when major cryptocurrencies trade sideways.
The surge revived debate about whether 2026 will see sustained momentum or repeat previous volatility patterns.
Read next: This Analyst Projects Bitcoin at $200K if This Historical Patterns Hold in 2026
