PENGU Token Retreat May Reflect NFT Market Slump Despite Pudgy Penguins’ Game Downloads August 29, 2025

The PENGU token, associated with the Pudgy Penguins NFT project, has declined by over 20% in August, despite the recent release of a new mobile game titled Pudgy Party, which has seen over 50,000 downloads on Google Play and has entered the top 10 most downloaded games on Apple’s App Store. The token dropped nearly 4% on Friday, with further losses observed in the prior 30-day period, as reported by CoinMarketCap. The price decline coincides with a broader downturn in the NFT market, where other prominent collections such as Bored Ape Yacht Club (BAYC) and Doodles have also posted double-digit losses during the same period. Pudgy Penguins, a notable NFT project that incorporates physical merchandise, has seen its token’s value decline by more than 20% in dollar terms since the beginning of the month. The project continues to maintain a strong presence through its expansion into physical goods and gaming.

The broader NFT market has experienced a decline in total market capitalization, falling from $9.3 billion at the start of August to approximately $7.4 billion as of the current writing. The NFT sector remains closely correlated with the performance of Ethereum (ETH), which has seen a decline from its recent all-time high of about $4,957. The Ethereum network is a central hub for NFT trading activity, and as Ether’s price retraced, the NFT market followed suit. According to NFTPriceFloor, the floor prices of several NFT collections have experienced significant declines, with Pudgy Penguins, BAYC, and Doodles among the hardest hit. In contrast, CryptoPunks has shown relative resilience, rising by nearly 3% in August.

The PENGU token’s recent performance has also been influenced by regulatory developments. The U.S. Securities and Exchange Commission (SEC) has delayed the approval of the Canary Spot Pengu ETF, pushing the decision to October 12, 2025. The delay has added to bearish pressure on the token, causing PENGU to slip by over 1% to $0.030, a price level near key support. Analysts such as Ali Martinez have noted that the price action mirrors historical patterns observed in the April–July period, where a similar sideways phase preceded a strong rally. This has led some market participants to speculate that the current consolidation could represent a “buy-the-dip” opportunity ahead of a potential upward move.

Pudgy Penguins’ NFT collection saw a decline of 17.3% in floor price to 10.32 ETH, while BAYC’s floor price dropped 14.7% to 9.59 ETH. Doodles suffered the steepest decline, falling 18.9% to 0.73 ETH. Other notable collections, including Moonbirds and Lil Pudgys, also saw declines of 10.5% and 14.6%, respectively. Despite the drop in floor prices, trading activity has remained robust. Pudgy Penguins led the market with roughly 2,112 ETH (about $9.36 million) in volume, followed by Moonbirds and CryptoPunks.

Looking ahead, analysts suggest that Ethereum may test its 200-day EMA at approximately $4,088 after its recent decline. The bullish trend remains intact as long as the $4,000 support level holds, with a break above $5,000 potentially signaling further upward movement. Meanwhile, investor sentiment remains mixed, with some viewing the current dip in the NFT market as a potential buying opportunity and others adopting a more cautious approach.

Source: [1] PENGU loses 20% in August amid Pudgy Party launch (https://cointelegraph.com/news/pengu-loses-20-august-pudgy-party-launch) [2] Buy-the-Dip or Breakdown? Pengu Consolidates Between $0.025 and $0.035 (https://cryptorank.io/news/feed/5206f-pudgy-penguins-pengu-price-buy-dip-support-test) [3] How Ethereum Price Drop Is Impacting Top NFTs Like Pudgy … (https://finance.yahoo.com/news/ethereum-price-drop-impacting-top-134901999.html) [4] Major NFT Values Decline as Ethereum Pulls Back from Peak … (https://www.radom.com/insights/major-nft-values-decline-as-ethereum-pulls-back-from-peak-prices) [5] Ethereum Price Drop Causes Major Declines in Top NFT … (https://holder.io/news/ethereum-price-drop-nft-declines/)