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Key Takeaways
- PENGU token plummeted over 50% in value following its airdrop.
- The decline in PENGU token also led to a sharp drop in Pudgy Penguins NFT floor price.
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PENGU token plunged more than 50% after its airdrop to Pudgy Penguins NFT holders went live. The token’s value initially surged to $0.068 but quickly fell to $0.031 amid heavy selling pressure.
The token’s decline coincided with a sharp drop in Pudgy Penguins NFT prices, as the airdrop’s falling value also triggered a decline in the NFT collection’s floor price, dropping from 33 ETH to 16 ETH.
The NFT collection, which recently ranked as the second-largest by market cap, has fallen back to third place as Bored Ape Yacht Club reclaimed the spot with a floor price of 18.89 ETH, according to CoinGecko data.
The token launched with a $2.3 billion market capitalization 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 intensified in the first four hours, reaching $425 million in volume, while GeckoTerminal data showed more than 250,000 on-chain holders.
However, DexScreener data showed a significant imbalance in market sentiment, with 111,000 sellers outpacing 59,000 buyers, contributing to the downward pressure on the token’s price.
On-chain analysis from Lookonchain, shared on X, revealed further insights into the volatility.
Many traders bought and sold PENGU for quick profits, with one notable example involving a trader who purchased 5.3 million tokens and sold them in batches within 20 minutes, earning $13.72 million.
This pattern highlights the lack of long-term holders, as many users quickly offloaded their tokens to capitalize on the launch.
Major crypto exchanges including Binance, OKX, Bybit, and KuCoin listed PENGU for spot trading during the launch.
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This article first appeared at Crypto Briefing
