PENGU token plummeted over 50% in value following its airdrop.
The decline in PENGU token also led to a sharp drop in Pudgy Penguins NFT floor price.
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PENGU token plunged more than 50% after its airdrop to Pudgy Penguins NFT holders went live. The token’s value initially surged to $0.068 but quickly fell to $0.031 amid heavy selling pressure.PENGU price chart (TradingView)The token’s decline coincided with a sharp drop in Pudgy Penguins NFT prices, as the airdrop’s falling value also triggered a decline in the NFT collection’s floor price, dropping from 33 ETH to 16 ETH.The NFT collection, which recently ranked as the second-largest by market cap, 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 $2.3 billion market capitalization and quickly generated over $90 million in trading volume. At press time, PENGU’s market cap 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 on-chain holders.However, DexScreener data showed a significant imbalance in market sentiment, with 111,000 sellers outpacing 59,000 buyers, contributing to the downward pressure on the token’s price.On-chain analysis from Lookonchain, shared on X, revealed further insights into the volatility.Many traders bought and sold PENGU for quick profits, with one notable example involving a trader who purchased 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 offloaded their tokens to capitalize on the launch.Major crypto exchanges including Binance, OKX, Bybit, and KuCoin listed PENGU for spot trading during the launch.
