Key Takeaways
What will be the market cap of PENGU if its price is $1?
Not accounting for the token unlocks in the coming years, its market cap would be at least $62 billion- 3/4 of the current memecoin sector’s market cap.
How should PENGU holders navigate the markets?
PENGU is likely to move alongside Bitcoin and Dogecoin, with the latter especially likely to lead PENGU’s upcoming price trends.
The Pudgy Penguins [PENGU] brand has been growing. A spate of partnerships in recent months has boosted its visibility and increased the project’s legitimacy in the eyes of the public.
NASCAR fans in crypto would have been surprised and excited by the partnership announcement in mid-June.
A week ago, Sharps Technology (STSS), a publicly listed Solana [SOL] treasury, announced its partnership with the Pudgy Penguins Web3 brand. The purpose was to bring “exposure and connectivity to the Solana digital asset treasury space.”
TouchMagix announced a Pudgy Penguins partnership in August, bringing the NFT project brand to the worldwide arcade industry. Beyond these partnerships, the tokenomics behind PENGU were also interesting.
Of the 88.88 billion total supply, 71% (roughly 62 billion) PENGU has been unlocked.
Data showed a 17.8% allocation to the current and future team, and an 11% allocation to the company. These are subject to a 1-year cliff and 3-year vesting period.
The high circulation and the transparent vesting for the team and company meant that the threat of a massive sell-off from initial investors or the team was not looming.
In that sense, it was healthy- but is it enough to send prices to $1?
When will PENGU reach $1?
Source: CryptoSlam
Data from CryptoSlam revealed that the sales transactions and sales volume have both dropped 29% and 40% over the past month. In contrast, the price of PENGU was up 28.6%.
This showed that the token and its sentiment do not depend much on the NFT sales.
Rather, it reacts to crypto market-wide sentiment, particularly Dogecoin [DOGE], which was up 33% in the same period.
Source: CryptoQuant
Daily active addresses were at 6,599 at the time of writing, with a 7-day moving average of 8,473. For a $2.3 billion market cap asset, these numbers did not appear too impressive.
Source: CryptoQuant
To glean some information on what holders were doing, the net position change on exchanges was scanned.
In August, and once again in the past 24 hours, the net position change was negative, showing accumulation trends and tokens moving out of exchanges.
While this was a glimmer of hope, it was not enough to expect $1 PENGU prices this cycle.
Dogecoin bulls have been waiting for the prophesied $1 target for years, and DOGE is the undisputed king of meme coins, in size and popularity.
Therefore, PENGU holders might have to wait for years to see a $1 price tag per token.
This would take the asset’s market cap to $62 billion, without factoring in the unlocks over the coming years. For comparison, the current market cap of the meme coin sector was $81 billion.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion