The eagerly anticipated airdrop of the $PENGU token, tied to the Pudgy Penguins NFT collection, encountered challenges as its value plummeted within five days of the event.
$PENGU Price Falls Drastically Post-Airdrop
Data from decentralized exchanges (DEXs) reveal that $PENGU’s price dropped by 57% within 24 hours following the airdrop. Initially, the token saw a brief surge, reaching $0.068 before plunging to $0.028. This rapid decline also impacted the project’s market capitalization, which tumbled from $4.3 billion to $1.7 billion, according to CoinGecko.
Similarly, the floor price of Pudgy Penguins NFTs took a significant hit. It fell from a 30-day peak of 34.8 ETH prior to the airdrop to 18.2 ETH, marking a sharp decline.
Speculators and Farmers Drive $PENGU Volatility
The extreme price volatility is attributed to speculators and airdrop farmers. Crypto analytics platform Lookonchain reported that one trader profited $8.4 million within 20 minutes of trading $PENGU. The trader invested $5.36 million in 239.6 million $PENGU tokens and quickly sold them for $13.72 million, realizing a massive gain.
Such trading activity also influenced the trading volume, with an estimated $425 million worth of $PENGU exchanged during the initial four hours post-airdrop.
Major Exchange Listings Stabilize $PENGU Price
To address the volatility, the $PENGU development team secured listings on prominent exchanges like OKX, Binance, and Crypto.com. These listings increased liquidity and provided broader access to investors. Despite this, $PENGU’s price has stabilized between $0.025 and $0.027, following a low of $0.023.
Chart analysis suggests that $PENGU might be forming a falling wedge, with lower highs meeting higher lows. A breakout above $0.03 could indicate recovery potential, allowing the token to reclaim lost ground. Furthermore, the Relative Strength Index (RSI) crossing the 50 mark shows early signs of positive momentum.
NFT Demand and Floor Price Struggles Persist
While the token shows signs of stabilization, the demand for Pudgy Penguins NFTs continues to face pressure. The floor price has declined significantly since the airdrop announcement, suggesting that farmers heavily influenced market activity.
Late buyers could potentially push $PENGU’s price to the $0.04 range, which served as a key resistance level shortly after the airdrop.
Solaxy’s $SOLX Token Presale Gains Investor Attention
Although the $PENGU airdrop underperformed, another token is capturing investor interest. Solaxy’s $SOLX, designed for the Solana blockchain, has raised over $4.52 million in its presale, which ends in 24 hours.
Solaxy Offers a Solution to Solana’s Congestion Issues
Solaxy aims to address transaction congestion on Solana’s mainnet by bundling transactions securely and processing them offline. This layer-two solution ensures zero delays, errors, or congestion.
Investors can purchase $SOLX using ETH, USDT, or BNB, or opt for fiat payment methods through the Solaxy website. Those without a crypto wallet can explore Best Wallet, a cutting-edge Web3 storage solution touted as a potential competitor to MetaMask.
Early Success Points to Future Growth
The presale’s success positions $SOLX for potential listings on major centralized exchanges (CEXs) upon its launch. The significant funds raised during this phase reflect investor confidence in the project’s ability to deliver value in the Solana ecosystem
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