Pudgy Penguins navigate market swings as NFT prices dip and Abstract debuts

Pudgy Penguins have faced significant volatility, with their floor price dropping 63% from a December high of 29 ETH to 10.75 ETH as of Feb. 1. This decline followed the launch of $PENGU, their Solana-based memecoin, which initially fueled excitement but later retraced from a $2.7 billion market cap to $940 million.

Further ecosystem expansion came with the launch of Abstract, an Ethereum Layer 2 network developed by Igloo Inc., on Jan. 27. While some holders anticipated an airdrop, the absence of one coincided with a sharp 37.5% decline in NFT floor prices. Despite price swings, Pudgy Penguins maintain a stable trading volume of around 15 million per week.

The NFT tokenization trend has extended beyond Pudgy Penguins, with Azuki launching its own token, $ANIME, which similarly experienced a sharp valuation decline.

Looking ahead, Pudgy Penguin holders are monitoring potential benefits from Abstract’s EXP system, which could influence future token distribution. Optimism remains as retail traders re-enter the crypto space, with some hoping for a resurgence akin to the NFT boom of 2021.

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