- After a strong launch, Pudgy Penguins’ PENGU token surged to $0.068, then dropped 55% due to heavy selling pressure.
- Despite initial hype, PENGU saw 111,000 sellers outpace 59,000 buyers, triggering a rapid price decline.
- The PENGU price drop also impacted major meme coins like Dogecoin and Shiba Inu, causing a 3.5% drop in the meme coin market.
The much awaited release of the Solana based PENGU, has generated much interest in the crypto space even though the project has not been without its difficulties. The token that kicked off its trading at $0.068, spiked extremely high and then plummeted to $0.029 wiping out more than 55% of its value in less than a day. These heavy selling pressures mainly resulted from the dumping pressure from big investors seeking to book profits after the initial pumping of the digital asset.
PENGU Faces Selling Pressure
The token was also launched and received remarkable interest from the investors at its first day of trading. The trading volume within the first four hours reached $425 million, bringing market capitalization to $2.3 billion. However, after the time of its starting, the token’s price started to decline rapidly due to the change in the market sentiment. DexScreener provides information that reveal that there were more sellers than buyers, 111,000 sellers compared to 59,000 buyers and this led to a great drop in value.
The token was also characterized by high volatility and this was contributed by speculative trading. A large number of traders tried to make a profit from the price oscillations and one of them bought 5.3 million tokens, and within just 20 minutes had sold them in several different transactions, earning $13.72 million according to data from Lookonchain.
The token’s performance also set the tone within the meme coin market as well. Other popular coins such as Dogecoin, Shiba Inu, and PEPE also fell following the token drop. Dogecoin slid 4%, Shiba Inu lost 4.3%, and PEPE declined by 6.3%. Thus, the total capitalization of the meme coins market decreased by 3.5%, standing at $127 billion, proving that all these tokens are rather linked.
Pudgy Penguins NFT Decline
Apart from the token’s price woes, the the project compounded pressure on the ecosystem by airdropping tokens to Pudgy Penguins NFT hodlers. The prices of the Pudgy Penguins NFTs that had earlier shown a lot of activity also declined. The floor price of the collection dropped from 33 ETH to 17 ETH, making it fall due to the value of the linked token.
Formerly the second biggest NFT project in the market capitalization, coin has now been surpassed by the Bored Ape Yacht Club that currently boasts of a floor price of 18.30 ETH. This change in rankings has been quite a hit to the Pudgy Penguins brand, and the change in market sentiment is seen, as many investors are now revisiting their decisions.
Source: CoinGecko
PENGU was also available on most of the leading digital asset platforms during its early stage such as Binance, OKX, Bybit, and KuCoin. In the meantime, the challenges that the Pudgy Penguins ecosystem is facing affect the future of token in one way or another. As the token fails to rally and the value of the NFT collection declines, the community cannot help but ask if this is a temporary setback or if there are more significant problems with the Pudgy Penguins project.
