Pudgy Penguins Solana Token, Ethereum NFTs Plunge Alongside Abstract Network Launch
Pudgy Penguins NFTs and PENGU, the ecosystem’s Solana token, have fallen sharply within the final 24 hours since its mother or father firm launched Summary, a consumer-focused Ethereum layer-2 community.
PENGU has fallen 24% throughout that point and 49% within the final 30 days to $0.0173, dropping it exterior the high 100 crypto belongings by market cap in keeping with CoinGecko. The Solana token has fallen to its lowest worth for the reason that risky launch day in December.
In the meantime, the unique Pudgy Penguins NFTs on Ethereum have skilled a related decline, dropping slightly below 20% within the final 24 hours, and 39% on the week to $37,950 or 11.94 ETH.
Whereas the broader market decline could have performed a task, some merchants and analysts have recommended that the steeper Penguin decline comes amid the dearth of fast rewards for Penguin-linked belongings on the Summary community.
“The response means that [Pudgy Penguins NFTs] had been being priced with the expectation of a mainnet [token generation event] with a wholesome drop to Pudgy holders, not a chronic XP/Factors program,” posted on-chain analytics and block explorer platform Parsec Finance on X (previously referred to as Twitter).
The worth decline has additionally helped propel an NFT liquidation cascade on Mix, the Blur market’s NFT financialization platform, as detailed by pseudonymous “Trendy Market” podcast host and Web3 analyst, BCheque.
“As a result of the ground worth retains happening, extra lenders pull their loans, which will increase the variety of NFTs needing to refinance the mortgage. When no lender steps in, the NFT will get liquidated into the palms of the lender,” he mentioned. “The lender doesn’t need it; [they] simply needed to earn curiosity on the mortgage. So the lender sells it to the market to recoup as a lot of the mortgage principal as potential. Repeat time and again because the spiral continues.”
The decline marks greater than a 60% retrace from the Pudgy Penguins excessive of greater than $100,000 previous to its PENGU airdrop in December.
Whereas the group stirs on the dearth of fast rewards for Pudgy Penguin customers, the Summary staff made it clear that multipliers for XP—the chain’s native reward system—wouldn’t be the one method that Penguins and PENGU holders are rewarded.
“At launch, the Pudgy Penguin and Lil Pudgy standing provides customers bonus XP for utilizing Summary. There will likely be extra coming for these holders,” the Pudgy Penguins X account posted. “PENGU plans to have a major tie in with Summary within the close to future, however for now, take pleasure in further XP each week primarily based in your tier.”
For now, Pudgy Penguins and Lil Pudgy NFT holders can declare an XP multiplier inside their Summary World Pockets rewards tab. House owners of no less than 88,888 PENGU tokens—roughly $1,520 price at present costs—can do the identical.
Summary launched its mainnet and portal on Monday. The Pudgy Penguins mother or father firm raised $11 million in 2024 in an effort to launch the community, making an attempt to get billions of customers on-chain and interacting with shopper crypto purposes and tasks.
Edited by Andrew Hayward
