Capital Rush into NFT Tokens Puts PENGU’s Rally at Risk
Pudgy Penguins (PENGU) faces pressure amid a surge in interest in NFTs (non-fungible tokens). This move could pull capital away from the trending meme coin, potentially influencing its price.
Meanwhile, investors hope for a PENGU ETF (exchange-traded fund) following Canary Capital’s March filing.
PENGU Faces New Competition as NFT Tokens Attract Growing InvestmentPudgy Penguins meme coin has been the center of attention for months, since Canary Capital filed for a PENGU ETF. Hype around the PENGU meme coin invigorated in late June, following Justin Sun’s move to join the huddle.
Amidst the frenzy and hopes for a PENGU ETF, the token soared, with analysts projecting even more gains. However, the optimism may no longer be sustainable amid renewed interest in NFT tokens.
Over the weekend, Ethereum ignited renewed interest in non-fungible tokens, unveiling the NFT Torch ahead of its 10th anniversary. With it came a frenzy of NFT buying, with a single wallet scooping 48 CryptoPunk NFTs for $8.5 million.
Analysts also noted an acceleration in the purchases, causing a surge in the CryptoPunk NFT floor price. According to Shotgun, a popular user on X (Twitter), whales are showing conviction with legacy collections outperforming, suggesting the market may be rotating back to quality NFTs.
88 Punks sold in the past 24h, and the floor jumped to 47.75 ETH (~$180K).
Here’s what happened ⤸
A single whale swept 45 CryptoPunks (worth ~$7.8M), igniting a 15.9% floor surge from ~40.9 to 47.75 ETH.
Add in another 43 organic sales, and we’re looking at 88 total Punks… pic.twitter.com/6UDKWJ9jih
Legacy NFT projects are getting heavy buys and pumps. According to data on Artemis, the NFT sector is already outperforming the broader market, rising by over 200% in the last month. Notably, the NFT sector has more than tripled the Ethereum market.
NFT Sector Outperforms Broader Market. Source: Artemis
Despite the euphoria around PENGU and Pudgy Penguins NFTs, CryptoPunks are leading the sector in market capitalization metrics.
However, on 24-hour sales metrics, BAYC (Bored Ape Yacht Club) and Mutant Ape Yacht Club face stiff competition.
NFT Collections. Source: CoinGecko
Capital Flows Signal Appetite for Other NFT Projects Beyond PENGU
Analysts are looking for PENGU-like opportunities, with ANIME as a prospective choice. Tommy, a trader and popular user on X, highlights ANIME as the best liquid NFT beta after the token bottomed out recently.
Thesis on why I took a position in $ANIME.
Chart looks close to bottomed out. Its real ATH was 1.8B FDV, sitting at 200M FDV (114M MC).
IMO, it's the best liquid NFT beta currently.$PENGU has been rallying for days while Azuki's coin hasn't seen much PA. pic.twitter.com/2grLA3fugt
