Pudgy Penguins’ native token, PENGU, has made headlines itself, exploding as much as 500% in the last week of July 2025. Now, it is beginning to show signs of a slowdown. On August 1, the token fell by 7%. This drop is further proof of the typical memecoin volatility and the weakness in the broader market. This correction serves as a stark reminder of how volatile the NFT and digital collectibles marketplace truly is.
PENGU’s value has experienced a recent decline. This is after it briefly overtook Bonk to become the original Solana-based memecoin of highest market cap, thanks to a sudden surge. That skyrocketing market crushed projects such as BONK. This was largely driven by excitement around Pudgy Penguins’ metaverse play and their growing retail distribution. These NFT token price corrections tend to happen in quick succession post-hype.
As a result, Pudgy Penguins has successfully onboarded over 860,000 new users, most of whom had no previous experience with Web3. A significant 86% of Pudgy Penguins' "Forever Pudgy" NFT holders were new to digital assets, demonstrating the project's role in mainstream onboarding. As a result of its unique approach to physical products, the project has drawn in $47 million from more than 180,000 new users. Over 1 million Pudgy Penguins toys have already sold out in top retailers like Walmart, Amazon and Target!
The most interesting aspect of the project’s success is its ability to blend physical products with digital assets. Each Pudgy Penguins toy purchase comes with the corresponding NFT, bridging the world of physical and digital ownership in an exciting way. These toy sales earned the parent company $13.4 million in revenue in just one year. This strategy has received praise from industry insiders, with Animoca Brands praising Pudgy Penguins’ unique strategy.
Pudgy Penguins is currently and aggressively growing its metaverse integration. Their aim is to provide a more compelling and informative experience for the user. This continued development in the digital realm, combined with its strong retail presence, positions Pudgy Penguins as a unique player in the NFT space. One of the prime factors for the project’s success has been its capability to connect physical collectibles with their digital counterparts.
