Pudgy Penguins’ native token, PENGU, surged 13% on January 5, reaching $0.040 and marking a 250% increase since its launch on December 17. The market cap has decreased from $2.8 billion to $2.5 billion, with some large holders cashing out, including a significant withdrawal of 84 million PENGU worth $3.13 million from Binance. Despite this price rally, Pudgy Penguins’ NFT sales dropped by 52% in the last week to $5.5 million, with NFT transactions falling by 51%. The community lead of Pudgy Penguins highlighted the project's viral marketing efforts, achieving over 1.1 billion views for stickers and GIFs in early January. PENGU plans to expand on Ethereum and a layer-2 solution, with 25.9% of its total supply allocated for NFT holders via airdrop. Although no clear use case is confirmed, it may involve governance and ecosystem perks. While sales declined sharply, Pudgy Penguins remains a significant player in the NFT space, valued at $721 million, following partnerships with major retailers to offer licensed toys.

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