Key Takeaways
- PENGU token dropped more than 50% in value after its air phase.
- The decline in the PENGU token resulted in a significant drop in the floor price of Pudgy Penguins NFT.
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The PENGU token fell over 50% after falling to the Pudgy Penguins NFT holders to go live. The value of the token initially rose to $0.068 but quickly fell to $0.031 amid heavy selling pressure.
The decline of the token coincided with a sharp drop in Pudgy Penguins NFT prices, as the falling value of the airdrop also caused a decline in the floor price of the NFT pool, falling from 33 ETH to 16 ETH.
The NFT cluster, which was recently ranked as the second largest in terms of market cap, has fallen back to third place as Bored Ape Yacht Club regained the spot with a floor price of 18.89 ETH, reportedly. CoinGecko Database.
The token was launched with a market capitalization of $2.3 billion and quickly generated over $90 million in trading volume. At press time, PENGU's market cap has fallen to less than $1.9 billion.
Trading activity increased in the first four hours, reaching $425 million in volume, while GeckoTerminal data it showed more than 250,000 holders on chain.
However, DexScreener data a large imbalance in market sentiment emerged, with 111,000 sellers outnumbering 59,000 buyers, adding to the downward pressure on the token's price.
On-chain analysis from Lookonchain, divided by Xshowing further insight into the instability.
Many traders bought and sold PENGU for quick profits, with one notable example involving a trader who bought 5.3 million tokens and sold them in batches within 20 minutes, earning $13.72 million .
This pattern indicates a lack of long-term holders, as many users quickly download their tokens to take advantage of the release.
Major crypto exchanges including Binance, OKX, Bybit, and KuCoin listed PENGU for spot trading at the time of launch.
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