PENGU Token of Pudgy Penguins Jumps 13% Despite NFT Sales Decline
Pudgy Penguins’ native token, PENGU, was the biggest gainer on January 5, with an impressive 13% rally. This is despite the declining NFT sales of the Pudgy Penguins collection, which fell 52% over the last week, per CryptoSlam.
Main Metrics Showing Token Growth
The current price of PENGU stood at $0.040 at writing time, a spectacular 250% jump from its listing on December 17. At launch, the token’s market capitalization stood at $2.8 billion, but has contracted to $2.5 billion. Hours earlier, on-chain data provider Lookonchain had reported that a wallet transferred out 84 mln PENGU, worth $3.13 mln, from Binance – a possible sign that some big holders have been cashing out.
Viral Marketing and Community Engagement
Pudgy Penguins still find innovative ways to capture the attention of the public. The GIFs and Telegram stickers of the project reached 1.1 billion views within the first five days of January, which helped increase brand awareness. According to Berko Crypto, the community lead, the viral campaigns have increased engagement manifold on platforms such as TikTok and Instagram.
PENGU Token Expansion Plans
Currently, PENGU runs on the Solana blockchain but plans to expand into Ethereum and Abstract, a layer-2 scaling solution for Ethereum built by Igloo Inc. The maximum supply of the token is 88.88 billion, out of which 25.9% is reserved for airdrops to Pudgy Penguin NFT holders. There is no confirmation on the official use case for the token. However, several analysts believe it will be used for governance and exclusive ecosystem perks.
Slumping NFT Sales Despite the token growth, Pudgy Penguins NFT sales slumped considerably. Weekly sales dropped to $5.5m, down by 52% alongside a slump in transactions by 51% and by 56 and 41%, respectively, active buyers and sellers over the week. In comparison, the Azuki NFTs were slumped by 17.65%, while DMarket on Mythos surged 10.43%.
A Retail Success Story
Pudgy Penguins remains the second-largest NFT collection by market cap, with $721 million, only second to CryptoPunks at $1.4 billion. Besides that, its collaboration with retail giants Walmart and Target has made over a million Pudgy Penguins-licensed toy sales, making it a global brand.
