The Pudgy Penguins NFT collection is uniquely revitalizing the stagnated collectibles market in Web3, standing out among numerous defunct NFT projects. Recently, it ascended to become the world’s second most highly valued NFT set.
On Wednesday, the minimum or 'floor' price for each of the 8,888 whimsical penguins surged past $100,000. This leap placed its value beyond that of its predecessor, the famed Bored Apes Yacht Club. The entry cost for a Pudgy Penguin now exceeds the value of a bitcoin, currently trading at just over $100,000. Over the last week alone, the floor price climbed an impressive 76% to over 26 ether (ETH), or about $105,000. Meanwhile, the traditionally leading NFTs, Bored Apes and CryptoPunks, depreciated by 12%.
A report from CoinDesk unveiled plans by Pudgy Penguins to release a PENGU token on the Solana blockchain later this month, sparking heightened demand. Significant advantages are included for current NFT holders in the allocation strategy, possibly prompting holders to retain or increase their investments, thereby boosting demand. Of the 88 billion PENGU tokens, 23.5% will be earmarked for owners of collections such as Pudgy Penguins, Lil Pudgys, and Pudgy Rods. The Solana and Ethereum communities stand to gain 22% of the tokens, with another 12% allocated for providing liquidity on decentralized exchanges.
In the realm of NFTs, the floor price denotes the minimum cost of an asset within its collection, dictated by market dynamics like demand or uniqueness of traits. This price point is maintained until supplanted by a lower one, contrasting with the traditional token or stock markets, where fluctuating demand and supply continually redefine asset prices.
Launched in 2021, Pudgy Penguins exemplify unique craftsmanship, each penguin offering distinctive traits including background, body, face, head, and skin. Beyond digital collectibles, its parent company Igloo has broadened its reach, making significant inroads into physical products and mainstream branding. Last year’s introduction of the Pudgy Toys line, inspired by this digital art collection, saw sales exceed $10 million. These collectible igloos and plushies found their way into major retailers like Walmart, Target, Amazon, and Walgreens.