The NFT track, which has been absent from the bull market feast for a long time, has also been unable to sit still recently. First, yesterday Magic Eden opened the airdrop share query, and today the top NFT "Fat Penguin" Pudgy Penguins in the ETH ecosystem also tweeted to announce its coin issuance plan for this year.
Although the specific date and distribution details have not yet been announced, the overall token distribution ratio has been released. The largest share (25.9%) goes to the Pudgy community; at the same time, 24.12% is allocated to other communities, and even 0.35% is left for $FTT Holders.
The $PENGU token airdrop scale is still considerable, and Pudgy Penguins holders are expected to receive $31,000-$61,000 (7.9 $ETH-15.8 $ETH) per person. If Abstract Chain also provides token distribution for the Penguin community, this may become one of the largest airdrops in 2024 after HYPE.
Indeed, the biggest positive news for a project is its ability to stimulate price appreciation. With the release of the coin issuance news, the floor price of the Pudgy Penguins and Lil Pudgys NFT series has risen sharply: the floor price of Pudgy Penguins is currently reported at 18.55 $ETH (about $72,600), and the floor price of Lil Pudgys is currently reported at 1.91 $ETH (about $7,500), with a daily increase of nearly 20%, and the trading volume has increased 3-5 times.
NFT recovery, can projects grasp the trend to get out?
With the continued rise of the overall market, the overflow of funds has also come to the NFT ecosystem. Statistics show that the total NFT sales volume has started to recover, with the daily trading volume reaching nearly $40 million at its peak, and the weekly trading volume exceeding $100 million.
The blue-chip NFTs have also seen a promising rise, with the floor price and trading volume of the blue-chip NFTs on the ETH mainnet increasing nicely within 30 days.
Some projects have stopped operating, while others can't stop airdropping
In the bear market of the past two years, the NFT track can be said to be even more bearish than Altcoins. In 2021, the blue-chip NFTs like BAYC and Azuki encountered a series of major incidents such as community FUD and large-holder selloffs in the bear market, and their prices once plummeted to the freezing point. The market has also gradually disenchanted with NFTs, with the use cases of NFTs being more as "expected redemption vouchers" for future airdrops of a project or simply as commemorative certificates, and the vast majority of NFTs have lost their utility as investment/speculative assets. Even some major projects are not immune, on December 3, the once-popular NFT brand RTFKT, which was even acquired by Nike, announced that it would gradually cease operations as the crypto bull market arrived, which is quite saddening.
Except for the occasional project launching new hotspots, only a few blue-chip projects have relatively maintained their heat, and the polarization between NFT projects is also becoming more and more severe: some blue-chip NFTs have performed well even in the bear market, with projects like Milady, Pudgy Penguins, and Madlads receiving large airdrops from various popular projects such as Ethena ($ENA), Aethir ($ATH), Zksync ($ZK), and Wormhole ($W) this year alone, with the total airdrop value basically far exceeding the project's floor price.
Staying close to the market is obviously a path
From the current distribution plan, the Pudgy Penguins community obviously understands the market well, and the "customer attraction" ability of the old-school top NFT is indeed quite good. Not only does the community's share account for the majority of the distribution, but it is also very generous in the distribution to other communities. This distribution plan on both sides accounts for half of the total token amount.
In addition to the large allocation to the community, Pudgy Penguins, which was born on the ETH mainnet, has also specifically chosen to issue coins on the currently hottest Solana. Indeed, whether in terms of liquidity or player sentiment, as a cartoon NFT project, Pudgy Penguins' choice of the MEME-enthusiastic Solana is undoubtedly a better choice for the price launch of the project.
Can NFT issuance save the day?
By choosing to announce the coin issuance on Solana, the chain with the best liquidity, at a time when ETH has broken new highs and the market sentiment is improving, Pudgy Penguins' coin issuance plan is successful from a strategic perspective, and the market's response to this move has obviously been positive.
From the price trend of $APE in recent years, we can see that coin issuance is not a panacea for NFT projects. To avoid coin issuance becoming the last dance for project parties to realize value, we also need to look at the specific "operations" of the project parties in terms of price and token use cases. However, one thing is certain: not only for NFT projects, but for all old projects that want to recover, grasping the trend and staying close to the market is the main theme that should be followed in this bull market.
For us retail investors, no matter how the project blows, it is important to maintain observation and make calm and fully grasped investment decisions, and not to rush into chasing highs in a moment of excitement.
