Pudgy Penguins NFTs and PENGU, the ecosystem’s Solana token, have fallen sharply in the last 24 hours since its parent company launched Abstract, a consumer-focused Ethereum layer-2 network.
PENGU has fallen 24% during that time and 49% in the last 30 days to $0.0173, dropping it outside the top 100 crypto assets by market cap according to CoinGecko. The Solana token has fallen to its lowest price since the volatile launch day in December.
Meanwhile, the original Pudgy Penguins NFTs on Ethereum have experienced a similar decline, dropping just under 20% in the last 24 hours, and 39% on the week to $37,950 or 11.94 ETH.
Ethereum Layer-2 Network Abstract Launches, Offering XP Rewards for Users
Abstract, the consumer-focused Ethereum layer-2 network from Pudgy Penguins parent company Igloo Inc, is now live with Monday’s launch of its mainnet. The company raised $11 million in June 2024 with the goal of bringing billions of new users on-chain and becoming the leading blockchain for consumer crypto products and apps. “For too long, the industry has prioritized technology over user experience, creating barriers to mainstream adoption,” said Abstract co-founder and Pudgy Penguins owner Lu...
While the broader market decline may have played a role, some traders and analysts have suggested that the steeper Penguin decline comes amid the lack of immediate rewards for Penguin-linked assets on the Abstract network.
“The reaction suggests that [Pudgy Penguins NFTs] were being priced with the expectation of a mainnet [token generation event] with a healthy drop to Pudgy holders, not a prolonged XP/Points program,” posted on-chain analytics and block explorer platform Parsec Finance on X (formerly known as Twitter).
The price decline has also helped propel an NFT liquidation cascade on Blend, the Blur marketplace’s NFT financialization platform, as detailed by pseudonymous “Modern Market” podcast host and Web3 analyst, BCheque.
9 Biggest Games Launching on Ethereum Layer-2 Network Abstract
Ethereum layer-2 network Abstract is building out its ecosystem with a growing list of consumer applications—including a major focus on gaming. The chain’s most recent update indicates that at least 33 games or gaming-related projects will have some connection to the ecosystem after the Abstract mainnet launches this January. To prepare you, we’ve highlighted 9 of the most anticipated games set to launch on Abstract. How to Prepare for Abstract: The Consumer-Focused Ethereum Blockchain Pudgy W...
“Because the floor price keeps going down, more lenders pull their loans, which increases the number of NFTs needing to refinance the loan. When no lender steps in, the NFT gets liquidated into the hands of the lender,” he said. “The lender does not want it; [they] just wanted to earn interest on the loan. So the lender sells it to the market to recoup as much of the loan principal as possible. Repeat over and over again as the spiral continues.”
The decline marks more than a 60% retrace from the Pudgy Penguins high of more than $100,000 prior to its PENGU airdrop in December.
While the community stirs on the lack of immediate rewards for Pudgy Penguin users, the Abstract team made it clear that multipliers for XP—the chain’s native reward system—would not be the only way that Penguins and PENGU holders are rewarded.
PENGU: Everything You Need to Know About the Pudgy Penguins Solana Token and Airdrop
After amassing more than 50 billion social media views and placing toys on shelves in Walmart and Target stores across the country, Ethereum NFT project Pudgy Penguins has launched a token. News of the planned token launch sent the Pudgy Penguins floor price skyward, breaching $100,000 and becoming the second largest profile picture (PFP) project in all of NFTs. “A founder’s job in crypto is to maximize for optimal excitement,” said Pudgy Penguins IP owner Luca Netz in a video interview with c...
“At launch, the Pudgy Penguin and Lil Pudgy status gives users bonus XP for using Abstract. There will be more coming for these holders,” the Pudgy Penguins X account posted. “PENGU plans to have a significant tie in with Abstract in the near future, but for now, enjoy extra XP every week based on your tier.”
For now, Pudgy Penguins and Lil Pudgy NFT holders can claim an XP multiplier inside their Abstract Global Wallet rewards tab. Owners of at least 88,888 PENGU tokens—approximately $1,520 worth at current prices—can do the same.
Abstract launched its mainnet and portal on Monday. The Pudgy Penguins parent company raised $11 million in 2024 in an effort to launch the network, attempting to get billions of users on-chain and interacting with consumer crypto applications and projects.
Edited by Andrew Hayward
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