Pudgy Penguins’ PENGU Token, NFTs Suffer Major Price Dip Post-Airdrop

PENGU, the newly-launched cryptocurrency of the Pudgy Penguins ecosystem, suffered a pointy decline in worth a day after it went dwell.

On the time of writing, knowledge from CoinGecko confirmed that the token had fallen by 57.8% inside 24 hours to settle at $0.02892.

Airdrop Aftermath

The highly-anticipated airdrop launched on December 17 noticed about 62.8 billion PENGU tokens distributed to hundreds of thousands of certified NFT holders, merchants, and group members.

Nevertheless, following an preliminary surge that catapulted the token into the highest 100 cryptocurrencies by market cap, it suffered a swift sell-off that noticed its worth plummet by greater than 60%, falling from a excessive of $0.06845 to a low of $0.027.

Curiously, the injury wasn’t restricted to the cryptocurrency, with Pudgy Penguins’ NFT assortment suffering an identical destiny. Inside a single day, it noticed its flooring value plunge by greater than 48% to 17.1 ETH,  about $64,450, a stark distinction to its all-time excessive (ATH) stage of 36.33 ETH.

The downtrend however, data from CryptoSlam confirmed an increase in buying and selling exercise, with the gathering’s day by day gross sales quantity skyrocketing 258% to $21.7 million. Whereas some traders cashed out their holdings, others used the chance to purchase the dip, with the typical sale value at the moment sitting at 19.89 ETH.

A Sample of Submit-Airdrop Volatility

Whereas the fast drop in PENGU’s market worth could have raised some eyebrows, the phenomenon isn’t significantly new, with a number of different cryptocurrency giveaways resulting in a market frenzy.

Some observers have attributed this to an rising development amongst airdrop recipients who rapidly money out their holdings, resulting in a marked value instability at first of a coin’s post-distribution buying and selling.

For instance, NFT market Magic Eden’s ME token and Motion Community’s MOVE additionally skilled related patterns following their respective airdrops. Each of them registered sharp divestment, with ME particularly dropping 80% of its worth as 1000’s of claimants exited their positions.

Nevertheless, whatever the turbulence, PENGU nonetheless retains a market cap simply shy of $2 billion, inserting it at #78 among the many largest cryptocurrencies out there. Moreover, as of this writing, its value had made some marginal recoveries and was 10.5% above its lowest stage recorded solely hours in the past.