PENGU price loses steam as Animoca pushes long-term IP thesis

PENGU’s price is showing signs of topping off, despite Animoca’s long-term bet on its IP-driven future.

Pudgy Penguins (PENGU) rally is showing signs of a slowdown, despite several long-term bullish developments. On Friday, August 1, the PENGU price was down 7%, amid a broader market downturn. Still, this comes after a major rally, as since late July, the PENGU price has risen by almost 500%, overtaking BONK (BONK) as the biggest Solana-based (SOL) memecoin.

The rally was driven by a variety of factors, including broader bullish market sentiment. Specifically, an ETF filing by Canary Capital and a favorable report by Animoca Brands. In its July 28 report, Animoca Brands Research presented a bullish price thesis for PENGU, emphasizing its utility beyond crypto.

Animoca publishes bullish thesis on PENGU

Animoca Brands Research noted that Pudgy Penguins have tapped into a market that extends beyond crypto-native users. Notably, the project has sold over 1 million physical toys through partnerships with major retailers such as Walmart, Amazon, and Target. These retail sales generated $13.4 million in revenue between May 2023 and May 2024.

These sales have also served as a key onramp for non-crypto natives. The company issued NFTs with every toy purchase, onboarding over 860,000 users. Significantly, 86% of “Forever Pudgy” NFT holders had no prior Web3 experience.

Pudgy Penguins’ appeal beyond the crypto-native community is also gaining traction in traditional finance. On June 4, Canary Capital filed for a Canary PENGU ETF, offering investors exposure to the memecoin through a conventional financial product. Still, the filing sparked criticism, with Financial Times ETF correspondent Steve Johnson calling it a “financial abomination.”