The Pudgy Penguins (PENGU) token experienced a notable price drop following the launch of a significant airdrop earlier this week, which unlocked nearly 70% of the token’s supply. The result was a sharp decline of over 25% within 24 hours, with PENGU trading at approximately $0.024 on Friday, December 20, during the early New York session. Despite the immediate bearish price action, the altcoin’s fundamentals suggest a promising future.
With a fully diluted market valuation of $2.1 billion and a 24-hour trading volume of around $1.2 billion, the PENGU token has captured the attention of traders. However, the broad bearish sentiment in the cryptocurrency market, coupled with more than $1.3 million in leveraged liquidations, has led to increased selling pressure. The majority of liquidations—over 85%—were long positions, reflecting investor caution as early adopters, who received tokens during the airdrop, began taking profits.
Despite the recent sell-off, PENGU’s market fundamentals remain strong. The token’s value is supported by the success of the Pudgy Penguins NFT collection, which consists of 8,888 digital assets. These unique assets have seen a 51% rise in value over the last 90 days, with the floor price currently sitting at 16.8 ETH (approximately $50,000), according to OpenSea. This surge reflects the growing demand for Pudgy Penguins NFTs and their increasing relevance in the market.
Additionally, Pudgy Penguins has expanded its brand beyond digital assets, moving into physical products such as toys and clothing. The project’s community, known as the Huddle community, has also seen significant growth, providing a strong ecosystem that will support the token’s value over time. This expansion positions Pudgy Penguins for long-term success, especially as the broader crypto industry gains more mainstream attention.
Looking ahead, while PENGU is currently facing selling pressure, it is well-positioned for long-term growth, especially with expectations of a crypto bull run in 2025. Crypto analyst Leshka predicts that Pudgy Penguins could surpass a $10 billion market cap in the near future, underscoring the altcoin’s potential for substantial gains despite short-term volatility.
$PENGU is at $2b mcap now
— Leshka.eth ⛩ (@leshka_eth) December 18, 2024
Over 70% of airdrop tokens claimed already
This token survived $600,000,000 of sell pressure within 24 hours only -50% drawdown from the top
It's not about IF $PENGU can ever cross $10b mcap, it's about WHEN it gets there pic.twitter.com/XbL9n1P06T
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Trader Turns $6 Investment Into $87K as PENGU Token Surges Amid Sell-Offs
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