Pudgy Penguins NFTs and PENGU, the environment’s Solana token, have fallen sharply in the last 24 days since its parent company launched layer-2-pudgy-penguins” target=”_blank” class=”sc-adb616fe-0 bJsyml”>Abstract, a consumer-focused Ethereum layer-2 system.

PENGU has fallen 24 % during that time and 49 % in the last 30 days to$ 0.0173, dropping it outside the top 100 crypto assets by market cap according to CoinGecko. The Solana token’s price has dropped to its lowest level since December’s dangerous launch day.

However, the classic Pudgy Penguins NFTs on Ethereum have experienced a similar drop, dropping just under 20 % in the last 24 hours, and 39 % on the week to$ 37, 950 or 11.94 ETH. &nbsp,

While the larger market collapse may have played a part, some merchants and analysts have suggested that the steep drop in Penguins occurs as a result of the lack of immediate rewards for Penguin-linked assets on the Philosophical system.

” The reaction suggests that]Pudgy Penguins NFTs ] were being priced with the expectation of a mainnet]token generation event ] with a healthy drop to Pudgy holders, not a prolonged XP/Points program”, posted on-chain analytics and block explorer platform Parsec Finance on X ( formerly known as Twitter ). &nbsp,

The price reduction has also helped propel an NFT bankruptcy sequence on Mix, the Blur marketplace’s NFT financialization system, as detailed by anonymous” Modern Market” audio host and Web3 analyst, BCheque.

” There are more lenders pulling their loans because the floor price keeps falling, which causes more NFTs to need to refinance the loan. When no lender steps in, the NFT gets liquidated into the hands of the lender”, he said. ” The lender does not want it ,]they ] just wanted to earn interest on the loan. Therefore, the lender sells it to the market to recover as much of the loan principal as possible. Repeat over and over again as the spiral continues” .&nbsp,

The decline is more than 60 % higher than the$ 60,000 mark from the December Pudgy Penguins airdrop. &nbsp,

The Abstract team made it clear that multipliers for XP—the chain’s native reward system—would not be the only way that Penguins and PENGU holders would be rewarded despite the community’s outcry over the lack of immediate rewards for Pudgy Penguin users.

” At launch, the Pudgy Penguin and Lil Pudgy status gives users bonus XP for using Abstract. There will be more coming for these holders”, the Pudgy Penguins X account posted. ” PENGU intends to do much to resemble Abstract in the near future, but for the time being, enjoy extra XP per week based on your tier.”

For the time being, those who own Lil Pudgy NFTs and Pudgy Penguins ‘ Abstract Global Wallet rewards tab can still claim an XP multiplier. Owners of at least 88, 888 PENGU tokens—approximately$ 1, 520 worth at current prices—can do the same. &nbsp,

On Monday, Abstract launched its mainnet and portal. In an effort to get billions of users on-chain and interact with consumer crypto applications and projects, the Pudgy Penguins parent company raised$ 11 million in 2024.

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