Key takeaways
- The PENGU token dropped over 50% in value after its airdrop.
- The decline in the PENGU token also led to a sharp decline in the Pudgy Penguins NFT floor price.
The PENGU token dropped by more than 50% after its airdrop to Pudgy Penguins NFT holders went live. The token’s value initially rose to $0.068 but quickly fell to $0.031 under heavy selling pressure.
The token’s decline coincided with a sharp drop in Pudgy Penguin’s NFT prices, as the falling value of the airdrop also triggered a drop in the floor price of the NFT collection, falling from 33 ETH to 16 ETH.
The NFT collection, which was recently ranked as the second largest by market capitalization, 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 market cap of $2.3 billion and quickly generated over $90 million in trading volume. At press time, PENGUS’ market capitalization 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 chain holders.
However, DexScreener data showed a significant imbalance in market sentiment, with 111,000 sellers outpacing 59,000 buyers, adding to the downward pressure on the token’s price.
Chain analysis from Lookonchain, divided by Xrevealed additional insights into volatility.
Many traders bought and sold PENGU for quick profits, with one notable example involving a trader who bought 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 unloaded their tokens to take advantage of the launch.
Major crypto exchanges including Binance, OKX, Bybit and KuCoin listed PENGU for spot trading during launch.
