Pudgy Penguins’ native token, PENGU, has risen 13%, trading at $0.040 as of Jan. 5.
Pudgy Penguins’ native token, PENGU, has risen 13%, trading at $0.040 as of Jan. 5. This increase follows a 250% surge since its launch on Dec. 17, although its market capitalization has dropped from $2.8 billion to $2.5 billion, according to CoinMarketCap. On Jan. 4, a newly created wallet withdrew 84 million PENGU, worth $3.13 million, from Binance, indicating that some large holders might be cashing out during the token’s rally.
Despite this rise, Pudgy Penguins has faced a decline in its NFT sales. According to CoinMarketCap, NFT sales for the collection dropped by 52% in the first week of January, totaling $5.5 million. Additionally, the number of transactions fell by 51%, with a 56% decrease in buyers and a 41% drop in sellers. These figures show a decline in the NFT market despite the increase in the PENGU token’s value.
In addition to the token's success, Pudgy Penguins has achieved significant recognition for its digital content. In the first week of January, its GIFs and stickers received more than 1.1 billion views. The brand's community, led by Berko Crypto, also launched a sold-out sticker experiment on Telegram and ran successful viral campaigns on Instagram and TikTok. These efforts have helped maintain the brand’s visibility, despite the downturn in NFT sales.
Looking ahead, Pudgy Penguins plans to expand PENGU beyond Solana, aiming to integrate it with Ethereum and Abstract, an Ethereum layer-2 scaling solution. The token has a total supply of 88.88 billion, with 25.9% allocated for airdrops to NFT holders. Although there is no confirmed use case for the token yet, experts suggest it could be used for governance and exclusive ecosystem perks. There is also speculation that a future airdrop for PENGU holders could be in the works, with crypto trader Pentoshi hinting at it on social media.
Pudgy Penguins remains one of the largest NFT collections by market capitalization, second only to CryptoPunks. However, it faces competition from other NFT projects. For instance, Azuki’s sales have decreased by 17.65% recently, while DMarket on Mythos saw a 10.43% increase in sales during the same period. The Pudgy Penguins team’s focus on expanding its token’s use case could be vital in maintaining its place in the market.
Beyond digital assets, Pudgy Penguins continues to thrive in the physical retail space. Over one million Pudgy Penguins-licensed toys have been sold through partnerships with major retailers such as Walmart and Target. This move reflects the brand’s strategy to build a larger presence and appeal to a broader audience, not just within the digital asset community.
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