The highly anticipated launch of the PENGU token on the Solana blockchain failed to sustain its early momentum. Despite an initial surge to $0.068, PENGU's value plummeted over 54% to $0.031 within 24 hours due to heavy selling pressure from top holders.
This sharp decline followed a massive airdrop aimed at boosting ecosystem participation. However, short-term profit-taking by traders added significant volatility, raising concerns about the token’s long-term stability.
Meme Coin Market Faces Broad Declines
The meme coin market also witnessed a significant downturn. Dogecoin, Shiba Inu, and PEPE fell by 4%, 4.3%, and 6.3%, respectively, in the last 24 hours. The overall market cap for meme coins shrank 3.5% to $127 billion, as reported by CoinGecko.
Pudgy Penguins NFT Floor Price Drops 48%
The fallout extended to Pudgy Penguins NFTs, whose floor price dropped from 33 ETH to 17 ETH—a 48% plunge—after the PENGU token’s value tanked. Once the second-largest NFT collection by market cap, Pudgy Penguins has now slipped to third place, overtaken by Bored Ape Yacht Club with a floor price of 18.89 ETH.
Market Activity and Sentiment
The PENGU token launched with a $2.3 billion market cap and generated $425 million in trading volume within four hours. However, Lookonchain data revealed that most traders flipped their tokens for quick gains, intensifying market instability. This has weakened confidence in the Pudgy Penguins ecosystem, signaling potential challenges for its recovery.
Key Takeaways
- PENGU token lost over half its value within a day due to heavy selling pressure.
- Meme coin market cap shrank to $127 billion, with major coins like Dogecoin and PEPE posting losses.
- Pudgy Penguins NFTs saw a 48% drop in floor price, losing their market position to Bored Ape Yacht Club.
- Short-term trading activity eroded sentiment, posing risks to Pudgy Penguins’ ecosystem growth.
This trend highlights the volatility of meme assets and NFTs, emphasizing the need for robust strategies to sustain investor confidence and long-term value.
