PENGU Token Crashes 25% After Airdrop, but Should You Exit?
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After launching a major airdrop earlier this week that unlocked nearly 70% of the Pudgy Penguins (PENGU) token into circulation, the altcoin has seen a sharp decline. With a fully diluted market valuation of about $2.1 billion and a 24-hour trading volume around $1.2 billion, PENGU dropped over 25% in just 24 hours, trading at about $0.024 on Friday, December 20, during the early New York session.
The drop in price comes amid broader bearish sentiment in the crypto market. More than $1.3 million was liquidated from the PENGU leveraged market, with over 85% of liquidations involving long traders. As early adopters, who received PENGU tokens during the airdrop, begin to take profits, the token faces more downward pressure in the near term.
What to expect ahead? We’ve laid it all out for you.
PENGU Market FundamentalsDespite the recent decline, PENGU’s value is supported by the success of the Pudgy Penguins NFT collection, which consists of 8,888 digital assets. According to OpenSea, the floor price of these NFTs is around 16.8 ETH, or more than $50k, reflecting a 51% rise over the past 90 days.
The Pudgy Penguins team has also expanded into physical products like toys and clothing, further growing their brand. The community around Pudgy Penguins, known as the Huddle community, has also grown significantly, strengthening the ecosystem and positioning the project for future growth as the crypto industry continues to adopt mainstream attention.
What’s Next for PENGU?While the immediate effects of the airdrop may have cooled off, Pudgy Penguins is well-positioned for long-term growth, especially with the expected crypto bull run in 2025. Despite facing selling pressure, PENGU has managed to hold a market cap above $1 billion, demonstrating its resilience.
Crypto analyst Leshka expects the PENGU project to surpass a $10 billion market cap in the near future, highlighting the potential for significant gains despite short-term price fluctuations.
$PENGU is at $2b mcap now
Over 70% of airdrop tokens claimed already
This token survived $600,000,000 of sell pressure within 24 hours only -50% drawdown from the top
It's not about IF $PENGU can ever cross $10b mcap, it's about WHEN it gets there pic.twitter.com/XbL9n1P06T
(@leshka_eth) December 18, 2024
With the Pudgy Penguins ecosystem gaining momentum both digitally and physically, it’s clear that this is just the beginning of a much bigger story.