Pudgy Penguins recently burnt 12 billion PENGU tokens but the move did not prevent an 11.5% drop in token price.
By Parth Dubey
Edited by Julia Sakovich
Updated
3 mins read
The popular NFT project Pudgy Penguins concluded its PENGU token PENGU $0.00454 24h volatility: 10.3% Market cap: $285.17 M Vol. 24h: $38.40 M claim on Solana earlier than initially planned, resulting in the burn of over 12 billion unclaimed tokens. This move effectively removed around 13.69% of the total PENGU supply, worth over $150 million at the time of burning.
The claim period, previously set to end on March 9, was cut short by project head Luca Netz last week. Netz cited diminishing claims and an influx of bot activity as the reason behind the move.
Despite the significant reduction in token supply — a move often associated with boosting token scarcity and potentially increasing prices — PENGU’s price has dropped by 11.5% over the last 24 hours, trading at $0.0118 at the time of writing.
The unexpected drop in price following the burn has sparked debate within the PENGU community. Many token holders expressed disappointment, questioning why the burn failed to create the expected price momentum.
PENGU has also seen its market cap decline by 12%, settling at $742 million at the time of writing. The token now sits outside the top 100 cryptocurrencies by market capitalization.
Notably, PENGU’s daily chart reveals a bearish sentiment. Bollinger Bands shows that prices are trading near the lower band, suggesting ongoing downward pressure. While the lower trendline acts as support, a surge in selling pressure could trigger a bearish breakout. On the other hand, the Relative Strength Index (RSI), currently hovering at 25.87, signals that the token is in oversold territory. However, this could indicate a possible rebound if trades decide to buy the dip.
Source: TradingView
The MACD indicator for PENGU shows sustained bearish momentum, with the signal line remaining below the MACD line and negative histogram bars persisting. This suggests continued downward pressure in the near term with a key resistance level at $0.013.
Source: TradingView
Meanwhile, immediate support for PENGU rests at $0.011. Breaking below this support level may trigger further declines.
Despite the dip, the Pudgy Penguins maintains its prominence as the third-largest NFT collection after CryptoPunks and Bored Ape Yacht Club, with a total of 8,888 NFTs. Over the past seven days, it recorded 581 sales, according to NFT Price Floor data.
Moreover, the PENGU token ranks ninth among collectible and NFT tokens by market cap, while the overall NFT tokens’ market cap stands at $23.7 billion, down 1% in the last day, per CoinMarketCap.
The project’s parent company Igloo Inc remains optimistic about the project’s future. The firm recently revealed efforts to attract institutional interest and bring fresh fund inflows to both PENGU and its NFT collection. As the dust settles from the burn event, investors are keenly watching whether these strategic moves will revitalize market confidence and stabilize the token’s price trajectory.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
