Recently, the price of Pudgy Penguins has dropped by 2.32% in the past day, currently standing at $0.0103. This performance lags behind most stable crypto markets, as investors opted to take profits after a significant price surge. Nevertheless, the token's monthly increase still reaches 53.59%, but the selling pressure has intensified during this correction.
Trading volume surged by 57.17%, reaching $196 million, indicating that many investors sold at high prices. Despite the price decline, Pudgy Penguins is actively expanding its business.
The project’s average daily social media views are close to 1 billion, with product sales covering over 10,000 stores, including Walmart and Target. Additionally, it has entered the SEC's formal 19b-4 ETF review process through Canary Capital. Between April 10 and May 10, the floor price of its NFTs also rose from $9,500 to $12,900.
However, discussions surrounding the $40 million revenue reveal the main issues facing PENGU. Relevant discussions mention Pudgy Penguins' testimony in Congress and its integration with Venmo and PayPal through Paxos. These developments typically support token appreciation, yet even so, PENGU's price has still fallen 84% from its historical peak.
The focus of criticism lies in the token's operational mechanism. Some believe that the ecosystem does generate real business revenue, but very little value flows back to the token itself. There is no automatic buyback mechanism, no profit-sharing system, and no on-chain rewards directly related to merchandise sales or licensing agreements.
This concern became more pronounced on May 7, when a Pudgy Penguins wallet transferred 13.7 million PENGU tokens, worth about $1.5 million, to OKX, Bybit, Gate, and Bitget. Traders viewed these transfers as potential distributions at local peaks, after which PENGU's price dropped by about 7%. The discussion also compared PENGU's estimated buyback returns with yield-generating crypto products like Pendle PT-USDe, Ethena sUSDe, and Solana staking, which all have annual yields exceeding 6%.
Despite the recent decline, Pudgy Penguins' price still maintains an upward trend. Analysis shows that although a correction has occurred, the overall structure still displays bullish signs. The token has steadily risen from the $0.006 region in early April, encountering selling pressure near $0.0115.
Momentum indicators show that the market is cooling down but has not fully turned bearish. The Relative Strength Index (RSI) remains close to the neutral zone at around 51, having experienced multiple trades near overbought levels. The Ultimate Oscillator also hovers around 50, with buyers and sellers currently in relative balance.
A rejection near $0.0115 has formed the first major resistance area that traders need to watch. If buyers reclaim this area, the next target may be around $0.012. Support is close to $0.0098, and a drop below this level could expose it to the $0.009 region again.
Currently, a key factor driving PENGU's price is Canary Capital's ETF application. The proposed PENGU ETF entered the SEC's formal 19b-4 review process in June 2025, and if approved, it will create the first...