As an analyst with extensive experience navigating the volatile landscape of cryptocurrencies, I must say that the rapid decline of PENGU following its launch is not entirely surprising. While the initial surge was predictable given the hype around airdrops, the subsequent sell-off seems to be a pattern we’ve seen with many new coins.
The recently introduced digital currency called PENGU, which is part of the Pudgy Penguins network, experienced a significant drop in worth just one day following its launch.
Currently, as I type this, CoinGecko’s data indicates a 57.8% drop in the token value over the past 24 hours, ending at approximately $0.02892.
Airdrop Aftermath
As a researcher, I was thrilled to witness the launch of the long-awaited airdrop on December 17, which dispersed approximately 62.8 billion PENGU tokens among millions of eligible NFT owners, traders, and team members.
After a strong start pushing the token into the top 100 cryptocurrencies based on market capitalization, there was a rapid drop in its value that saw it lose more than 60%. This decline brought the price down from a peak of $0.06845 to a low of $0.027.
It’s worth noting that the harm extended beyond just the cryptocurrency, as Pudgy Penguins’ NFT collection experienced a similar setback. In just one day, its minimum sale price dropped by over 48%, reaching approximately 17.1 ETH or around $64,450. This is significantly lower than its highest recorded price (ATH) of 36.33 ETH.
Despite the overall downward trend, data from CryptoSlam indicates a surge in trading activity for this collection. In fact, the daily sales volume spiked an impressive 258%, reaching $21.7 million. Some investors chose to sell their holdings, but many others took advantage of the dip and purchased instead. The average sale price at present is 19.89 Ether.
A Pattern of Post-Airdrop Volatility
It’s worth noting that although PENGU’s recent decline in value might seem unusual to some, it’s actually a pattern we’ve seen before, as sudden drops like this have occurred with other cryptocurrencies following promotional events or giveaways, which can create quite a stir in the market.
Some people believe that the rapid selling of coins by airdrop recipients creates a pattern of early price volatility in the initial trading period following distribution, contributing to instability.
For instance, the ME token from NFT marketplace Magic Eden and Movement Network’s MOVE token showed similar trends post their airdrops. Both tokens witnessed a significant sell-off, with the ME token suffering a 80% drop in value as numerous recipients sold off their holdings.
Despite experiencing turbulence, PENGU maintains a market capitalization slightly under $2 billion, which ranks it at number 78 among the largest cryptocurrencies currently in circulation. At this moment, its price has experienced some minor gains and is now 10.5% higher than its lowest point just hours ago.
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2024-12-18 14:28