Pudgy Penguins’ PENGU Token Rallies 13% Despite Declining NFT Sales Figures

Table of Contents

Introduction

The cryptocurrency market has been experiencing a rollercoaster ride in the new year, with various tokens and projects showing significant growth. Among them is Pudgy Penguins’ native token, PENGU, which has emerged as one of the top performers, climbing 13% on January 5.

PENGU Token’s Price Surge

At the time of publication, PENGU was trading at $0.040, marking a substantial 250% surge since its launch on December 17. Initially debuting with a market cap of $2.8 billion, the token has since dipped to $2.5 billion, according to CoinGecko.

Large Holders Cash Out Amid Rally

As PENGU’s price continues to soar, some large holders are taking advantage of the rally by cashing out. According to blockchain analytics platform Lookonchain, a new wallet withdrew 84 million PENGU – worth $3.13 million – from Binance on January 4.

NFT Sales Decline Amid Token’s Growth

Despite PENGU’s price growth, Pudgy Penguins’ NFT sales have dropped by 52% in the last seven days, according to data from CryptoSlam. This decline is puzzling, given the project’s continued public interest and viral campaigns on social media platforms like Instagram and TikTok.

Community Lead Berko Crypto Weighs In

Berko Crypto, community lead at Pudgy Penguins, acknowledged the decline in NFT sales: "In just the first few days of 2025, Pudgy penguins had billions of GIF views, Telegram stickers experiment sold out in record time, hundreds of thousands of new penguins with actual stake in the game, viral Instagram and TikTok campaigns."

Pudgy Penguins Continues to Capture Public Interest

The project’s continued success can be attributed to its creative approach to engaging with its community. The project recorded over 1.1 billion views for its stickers and GIFs in the first five days of January.

PENGU Token’s Expansion Plans

PENGU currently operates on Solana but plans to expand to Ethereum and Abstract, an Ethereum layer-2 scaling solution developed by Igloo Inc. The token’s total supply is 88.88 billion, with 25.9% allocated for Pudgy Penguin NFT holders via airdrop claims.

No Official Use Case Confirmed

While no official use case for PENGU has been confirmed, the token is expected to play a role in governance and potentially access exclusive perks within the ecosystem, according to Bybit.

Crypto Trader Pentoshite Weighs In

Pentoshite teased the possibility of future airdrop for PENGU holders: "$PENGU holders to receive Abstract (potentially another 6 fig + airdrop. You may potentially qualify by getting the Pengu holder role and Pengu enjoyer roles in the Pudgy discord."

Pudgy Penguin NFT Sales Continue to Decline

Despite the token’s rally, Pudgy Penguins’ NFT sales have continued to decline steeply. Over the past week, total sales dropped to $5.5 million – a 52% decrease since the previous week. NFT transactions fell by 51%, while buyers and sellers plummeted by 56% and 41%, respectively.

Comparison with Other NFT Collections

In comparison, Azuki, another leading Ethereum NFT collection, saw sales fall by 17.65%, while DMarket on Mythos bucked the trend with a 10.43% increase in sales. Pudgy Penguins’ 52% drop is evident in this week’s top NFT collections by sales.

Project Background

Launched in 2021, Pudgy Penguins has grown to become the second-largest NFT collection by market cap, valued at $721 million, trailing behind CryptoPunks at $1.4 billion, according to NFT Price Floor. The project has secured partnerships with retail giants Walmart and Target to stock Pudgy Penguins-licensed toys in-store, leading to more than one million toy sales.

Conclusion

The continued growth of PENGU and the decline in NFT sales highlight the complexities of the cryptocurrency market. As the market continues to evolve, it will be interesting to see how Pudgy Penguins adapts and whether its token continues to soar.