Pudgy Penguins’ floor price dropped 63% to 10.75 ETH following the $PENGU token launch and Abstract Layer 2 network debut.
Pudgy Penguins Floor Price Drops Amid Ecosystem Changes
The price of Pudgy Penguins has dropped significantly. On February 1, it was 10.75 ETH, down from a high of 29 ETH in December. This is a decrease of 63% due to important changes in the environment.
The decline happened after the news on December 5 about $PENGU, a memecoin associated with the Solana project. At first, the news caused NFT prices to rise.
However, after the token launch on December 17, the market value of $PENGU reached a high of $2.7 billion before dropping to $940 million, with its price falling from 4.3 cents to 1.4 cents.
On January 27, Igloo Inc. launched Abstract, an Ethereum Layer 2 network, as part of their growth efforts. The expected airdrop of Abstract tokens didn’t happen, causing the price of Pudgy Penguins to fall sharply from 16.6 ETH to 10.7 ETH, a drop of 37.5%. Still, NFT trade volume has stayed steady at about 15 million each week since the $PENGU launch.
The launch of Pudgy Penguins’ token has affected not just its own community but also the overall tactics in the NFT market. Other big groups like Azuki have created their own tokens, including $ANIME. It started with a market value of about $500 million but later dropped to $250 million. Azuki NFTs also lost value.
Even with recent challenges, Pudgy Penguin holders are looking forward to possible positive developments in the next few weeks.
Abstract’s ‘experience’ (EXP) method could offer extra advantages, allowing holders to earn multipliers that might affect future token distributions. With renewed interest in crypto, some investors are hopeful for a comeback like the NFT market saw in 2021.
