The meme cryptocurrency PEPE surged 76% during the first week of 2026, becoming the top performer 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 advance 40%.

Trading volumes on major meme tokens exceeded $7.7 billion in 24 hours, as speculative appetite returned to cryptocurrency markets.

What happened

The PEPE rally began on January 1, rising from around $0.0000034 to over $0.0000059.

Open interest on PEPE futures contracts doubled, rising from $228 million to $470 million in four days.

Selling position liquidations exceeded $10 million on January 2, the largest single-day event in over a year.

A 'whale' turned $58,700 into nearly $490,000 by opening a 10x leveraged position at the end of December.

Robinhood users now hold approximately 8.3% of PEPE's total supply.

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Why it matters

Meme coins accounted for six of the top 10 gains among the 100 largest cryptocurrencies at the beginning of January.

The rally occurred as Bitcoin consolidated above $90,000, prompting a rotation into higher-volatility assets.

Technical indicators show PEPE has entered overbought territory with an RSI above 72.

Analysts noted that meme coin rallies typically coincide with periods when major cryptocurrencies trade sideways.

This surge has reignited the debate over whether 2026 will bring sustained momentum or a repetition of previous volatility patterns.

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