Recently, the price of PENGU has finally stabilized, and NFTs are returning to a reasonable price range. I am also monitoring its price daily to look for buying opportunities.

In fact, I completely sold out of Fat Penguin NFTs during this wave. In the last bear market, I saw the new team's continuous actions, so I bought a few at the bottom.

Then when it rose to 11 E, after seeing data from multiple sources and considering comprehensively, I felt the NFT sector would struggle to rise sharply without large-scale stimulation, so I sold and staked my E.

But at that time, I had no idea about the expectations of this wave of token issuance, so I watched it quickly go from 12 E to the final 30 E, and then after the airdrop, it fell back to 17 E, as if it were a dream.

Looking back on this wave of NFT market, although it is very similar to the previous Yuga incident, both occurring after blue-chip NFTs issued tokens, leading to market corrections, the underlying logic is different.

In the previous NFT bull market, Yuga's token issuance signaled the emergence of a second type of asset that could replace its value. As a result, the emergence of APE divided many trades that were originally for NFTs, leading to a sharp decline in the team's royalty income, and the appearance of Blur exacerbated this phenomenon.

In this round of the market, many NFTs have actually gone silent, but through the issuance of a second type of asset, they have been revived by speculators.

A clear example is that after the correction of Fat Penguins, the price of Azuki remains strong because most of those who bought it this round are betting on its token issuance expectations next month, while many NFTs without issuance plans or those that have already issued tokens remain stable.

For true collectors, this means that after experiencing these corrections, they can buy back these NFTs at a lower price. The tokens issued can also be chosen to enter the market after price adjustments, gradually realizing their expectations.

The potential of PENGU

Aside from Wintermute being the market maker, Fat Penguins have confirmed that they will create their own public chain, Abstract. This will be a super application chain centered around themselves and is likely to be similar to Ronin and Hyperliquid, personally establishing infrastructure and leveraging surrounding resources.

Currently, it is still uncertain whether this chain will choose PENGU as Gas, but considering that PENGU has already issued tokens on SOL with the support of the Solana Foundation, it could likely be a Layer 2 or compatible chain of Solana, facilitating the transfer of assets.

According to the previous scripts of most platforms or public chains, if they want to attract people to use or pay attention, raising the price of governance tokens is the best way. Therefore, this is why I am looking for opportunities to re-enter PENGU and Fat Penguin NFTs.

Previously, the Ethereum-based VCs led by a16z rejected a $5 million deal to buy the Fat Penguins during their most difficult times, instead investing $50 million in Moonbirds at a very high price.

However, in this wave, Solana still lacks blue-chip representative NFT projects, and the emergence of Fat Penguins and PENGU fills this gap.

This also allows PENGU to be recognized as the leader in NFTs when the market speculates on the Solana sector in the future. If the public chain eventually confirms it is based on Solana, it will also be the leader of SOL L2.

So now, with a market value of $2 billion for PENGU, I am willing to keep an eye on it. Currently, on-chain data shows that the airdrop traders have not yet sold out. If the market drops a bit more, I will buy in batches and continue to support it.

The above is my observation and thoughts on PENGU, hoping it will be helpful to you.


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