Pudgy Penguins partners with NASCAR to reach new audience

Pudgy Penguins, one of the few NFT projects still gaining attention, has announced a new partnership with NASCAR in another step towards reaching mainstream audiences.

The partnership was announced on June 11 via a brief post on X, where the team said it would be working with NASCAR to bring its character “Pengu” to race fans around the world. While few details were shared, the announcement adds to a growing list of brand efforts by Pudgy Penguins (PENGU) beyond the digital asset space.

This comes at a time when much of the NFT market has slowed. Last quarter, the market saw a 63% year-over-year sales decline, with total sales dropping from $4.1 billion in Q1 2024 to $1.5 billion in Q1 2025, according to CryptoSlam data.

Trading volumes are down sharply, and once-prominent projects have seen values fall. But Pudgy Penguins has continued to build, focusing less on speculation and more on creating a strong consumer brand.

The project has released new games, increased toy sales into thousands of U.S. stores, and attracted over two million sign-ups for its next blockchain game, Pengu Clash, in just the last month. It’s also released merchandise in Walgreens and partnered with Mythical Games to launch Pudgy Party, another step into Web3 gaming.

Despite these efforts, the project’s token hasn’t followed the same upward trend. The PENGU token is down more than 6% in the past 24 hours and nearly 20% over the past month. Still, the brand appears focused on long-term goals, growing its presence through retail, gaming, and now, live sports.

The partnership with NASCAR could help introduce Pudgy Penguins to a new, wider audience, which may not be familiar with NFTs but connects with characters and experiences. While it’s unclear exactly what the collaboration will include, it fits with the team’s recent efforts to expand outside the core crypto space.

Pudgy Penguins started as a collection of digital avatars but has slowly turned into a broader entertainment and product brand. Whether or not this shift pays off, it reflects a different approach than many of its peers.