Recently, the price of PENGU has finally stabilized, and NFTs are returning to a reasonable price range. I am also observing its price daily, looking for opportunities to buy in.

In fact, I completely missed the wave with Fat Penguins NFTs. During the last bear market, I saw the new team's constant activity and bought a few at the bottom.

Then when it rose to 11 E, I saw data from multiple sources and, after comprehensive consideration, felt that the NFT sector would have a hard time rising rapidly without large-scale stimulus. So I sold and used the ETH for staking.

But at that time, I never expected the token issuance expectation of this wave. I watched it quickly rise from 12 E to the final 30 E, and then after the airdrop finished, it fell back to 17 E, as if it were a dream.

Looking back at this wave of NFT market, although it is very similar to the last time with Yuga, both saw market corrections after blue-chip NFTs issued tokens, the underlying logic is different.

During the last NFT bull market, Yuga's token issuance meant that the market would see a second type of asset that could replace its value. As a result, the emergence of APE divided a lot of trading that originally belonged to NFTs, causing a sharp decline in its team's royalty income, and the emergence 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 more obvious case is that after the correction of Fat Penguins, the price of Azuki remains strong, because most of the people buying it this round are betting on its token issuance expectation next month, while many NFTs without issuance plans or that have already issued tokens remain stable.

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

The potential of PENGU

Apart from the market maker Wintermute, Fat Penguins has confirmed that it will create its own public chain, Abstract. This is a super application chain centered on itself, likely similar to Ronin and Hyperliquid, building infrastructure personally and leveraging surrounding resources.

Currently, it is still uncertain whether this chain will use PENGU as Gas, but considering that PENGU has already issued tokens on SOL with the support of the Solana Foundation, it could potentially be a Layer2 or compatible chain of Solana, facilitating the transfer of assets.

According to the 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. This is why I am looking for opportunities to get back into PENGU and Fat Penguins NFTs.

Previously, a16z-led Ethereum VCs rejected a $5 million buy-in for Fat Penguins during their toughest times, instead opting to invest $50 million in Moonbirds at a very high price.

However, in this wave, there is still a lack of blue-chip representative NFT projects on Solana, and the emergence of Fat Penguins and PENGU fills this gap.

This also means that in the future, when the market speculates on the Solana sector, PENGU can be recognized as the leader in NFTs. If the public chain ultimately confirms it is based on Solana, it will also become the leader of SOL L2.

So now with a market cap of $2 billion for PENGU, I am willing to keep an eye on it. Currently, on-chain, the airdrop traders haven't sold off yet. 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 helps you.


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