Meme coin PEPE soared by over 20% on January 2, 2026, following a bullish forecast from Hyperliquid trader James Wynn. The prediction ignited substantial market activity, boosting PEPE’s trading volume to a monthly high and captivating attention as traders looked to kick off the new trading year on a high note.
James Wynn Predicts $69 Billion Market Cap for PEPE
In his recent analysis, James Wynn proposed that PEPE could potentially hit a market capitalization of $69 billion by the end of 2026. This forecast came when PEPE’s market cap was approximately $1.7 billion, indicating a possibility of nearly a 35-fold increase in value from its current position.
If this bull market is not over, which I do not think it is, there is a high likelihood in my mind we see $PEPE at the forefront of memes leading the way as money flows into T1 memes, and proper fundamental altcoins.
This is side by side comparison between $SHIB and PEPE, if… pic.twitter.com/TRW0cn4pNk
— James Wynn (@JamesWynnReal) January 1, 2026
In his analysis, Wynn referenced the performance of Shiba Inu (SHIB), which skyrocketed from $3.5 billion to $41 billion in less than a month during the previous crypto cycle. He argued that PEPE currently shows stronger social engagement metrics compared to SHIB, which has been reflected in increased conversations on social media and renewed mentions by cryptocurrency exchanges.
Wynn also highlighted how PEPE is regularly applied in promotional contexts across various platforms, enhancing brand visibility and user onboarding. He stated his conviction, saying, “If SHIB can reach $41 billion, PEPE should be able to surpass it.” Notably, Wynn had previously recognized PEPE when its market cap was merely $600,000 and capitalized on this insight to reap substantial profits from the trade.
Trading Volume Jumps as Market Reacts
Following Wynn’s announcement, PEPE’s 24-hour trading volume surged past an impressive $600 million, marking its highest level in over a month. This spike reflects strong retail interest in PEPE, driven by a resurgence in enthusiasm surrounding meme coins at the dawn of 2026.
Market analyst SΞA noted that part of this uptick might be linked to U.S. tax-loss harvesting strategies. He explained that some investors who offloaded assets for tax reasons at year-end likely re-entered the market at the start of the new tax year, fueling new investment in PEPE.
While PEPE achieved a commendable 20% increase on the day, other meme coins also tuned into this positive momentum. Floki edged up by 10%, while Milady Cult Coin (CULT) experienced an impressive doubling in value after Ethereum co-founder Vitalik Buterin changed his profile picture to a Milady-themed avatar.
Mixed Sentiment in Meme Coin Market
Despite these recent gains, a cloud of caution lingers over the meme coin market, with many tokens still down between 70% to 90% from their all-time highs recorded in 2025. Data from CryptoQuant indicates that the dominance of memecoins remains low, and some analysts express skepticism regarding the potential for a strong recovery.
The atmosphere in the market is reminiscent of ongoing uncertainty, as trader CRG remarked that Bitcoin has yet to exhibit solid strength, posing a risk for potential reversals. This sentiment illustrates the cautious optimism surrounding meme coins and their role in attracting retail users and elevating market volume.
The vibrant discourse surrounding PEPE’s recent rally has reignited conversation about the significance of meme coins within the broader crypto landscape as we enter 2026.
