The PENGU Token, which is part of the Pudgy Penguins ecosystem, experienced a significant drop in price shortly after its launch. Within 24 hours, the token's value decreased by 57.8% and settled at $0.02892. This decline followed an airdrop event where approximately 62.8 billion PENGU tokens were distributed to qualified NFT holders, traders, and team members.
This price volatility is not unique to PENGU Token and is often observed in the cryptocurrency market after airdrop events. The decline in PENGU Token's price also had a significant impact on the Pudgy Penguins NFT collection. Within a day, the floor price of the NFT collection dropped by more than 48% to 17.1 ETH ($64,450), contrasting with its all-time high of 36.33 ETH.
Despite the price drop, trading activity for the Pudgy Penguins collection increased, with daily sales volume surging by 258% to $21.7 million. Some investors chose to sell their holdings, while others saw it as an opportunity to buy at a lower price.
The rapid decline in PENGU Token's market value is part of a common trend observed after airdrop events in the cryptocurrency space. Airdrop recipients often quickly sell their tokens, leading to price instability. This pattern has been seen in other recent airdrop events, such as those involving the ME token from Magic Eden and Movement Network's MOVE token. Both tokens experienced significant declines in value after their respective airdrops.
Despite the volatility, PENGU Token still has a market capitalization of nearly $2 billion, placing it at #78 among the largest cryptocurrencies. The token has shown some signs of recovery, with a 10.5% increase in price from its lowest level. This suggests that there is a core group of investors willing to support the token in the long term.