PENGU Rally 13% as Pudgy Penguins nft Sales Drop 52%
One of the week's biggest stories involves Pudgy Penguins, a popular nft collection that ironically saw its token rise in price while its nft sales fell sharply. PENGU, the native meme token pegged to Pudgy Penguins, rose 13%, trading around $0.040. Launched less than a month ago, the token had already surged 250% from its initial levels, briefly raising its market capitalization above $2.8 billion before settling at around $2.5 billion.
Despite the token's gains, data showed that Pudgy Penguins' overall nft sales volume fell 52% over the past seven days to approximately $5.5 million. The wallet activity also revealed that some early investors withdrew significant holdings from PENGU, such as <a target="_blank" href="https://x.com/lookonchain/status/1875424134009909608″ data-wpel-link=”external” target=”_blank” rel=”nofollow external noopener noreferrer”>an account withdrawing $3.13 million Binance token value. But community leaders maintain that engagement remains healthy, pointing to viral GIF stickers and Telegram groups that have garnered billions of views and tens of thousands of new participants.
Source: CoinGecko
Looking ahead, PENGU is expected to expand its presence, with developers hinting at expansions to ethereum and Abstract, an ethereum layer 2 solution. While the official usefulness remains unclear, <a target="_blank" href="https://learn.bybit.com/en/nft/what-is-pengu-pudgy-penguins-token/” data-wpel-link=”external” target=”_blank” rel=”nofollow external noopener noreferrer”>Bybit analysts say PENGU could incorporate governance or participation benefits in the near future. Influential cryptocurrency traders sparked rumors of future airdrops for holders, attracting those who regularly check Pudgy Penguins' Discord for new “enjoyer” roles.
Investors should note that meme tokens like PENGU may be subject to extreme volatility. Even if they offer surprising manifestations, their fundamental value often depends on the evolving sentiments of a devoted fan base. Pudgy Penguins may have brand power, but the nft crash underscores the fickle nature of the hype. Whether PENGU will be able to maintain the momentum (or completely break nft metrics) remains a question for the coming weeks.
CryptoPunks IP Rumors Cause 13% Increase in Floor Price
A growing rumor that Yuga Labs could be selling the intellectual property rights to CryptoPunks caused the minimum price of the nft collection to rise by 13% in just a few hours. Speculation began when an nft researcher known as “Wale.moca” <a target="_blank" href="https://x.com/waleswoosh/status/1879224522324562055″ data-wpel-link=”external” target=”_blank” rel=”nofollow external noopener noreferrer”>tweeted about the possible sale on January 14, citing anonymous sources. While Yuga Labs has neither confirmed nor denied the story, that didn't stop the market from reacting quickly, as nft Price Floor data showed CryptoPunks' floor price jumped from 36.6 eth to 41 eth (nearly $130,000) in a short period.
Source: CoinGecko
CryptoPunks are widely recognized as one of the first and <a target="_blank" href="https://cointelegraph.com/learn/articles/types-of-nft” data-wpel-link=”external” target=”_blank” rel=”nofollow external noopener noreferrer”>most valuable nft collections in the market. Yuga Labs acquired the Punks intellectual property from Larva Labs in March 2022, adding it to a list that also includes Bored Ape Yacht Club. If Yuga were to now sell or license CryptoPunks intellectual property to another entity, it would mark a major change in the nft landscape. The Punks hold a top-tier position by market capitalization (around $1.3 billion), nearly double that of the second-place Pudgy Penguins, making any IP transition a major event for collectors. and the nft space in general.
Despite the excitement, industry observers warn that rumors about an intellectual property sale may be just that: rumors. The nft sector has previously seen dramatic price movements due to much less substantial gossip, underscoring how sensitive major collections are to both genuine developments and speculation. Some collectors see the possibility of new ownership as a way to revitalize or expand the CryptoPunks brand. Others fear that a move away from Yuga Labs could dilute the collection's historical identity or hinder synergy with other high-profile Yuga projects.
In any case, this increase in the CryptoPunks floor price underlines the sustained power of the most prominent nft pools and the tendency of the nft market to react immediately to rumors. If Yuga releases a definitive statement soon, either confirming or dismissing the speculation, one can expect renewed clarity or another wave of price volatility.
The Federal Reserve's Neutral Tone, Advisors' Interest in crypto, and Wolf Capital's Ponzi Update
Outside of the nft space, macroeconomic and regulatory signals attracted investors' attention. Several Federal Reserve officials indicated a cautious but neutral outlook on monetary policy as they await clarity from Donald Trump's incoming administration. Federal Reserve Governor Michelle W. Bowman talked about being patient while reviewing “the trajectory of the economy” before enacting further interest rate cuts. Meanwhile, Kansas City Federal Reserve President Jeff Schmid echoed a similar sentimentsuggesting that the economy “needs no restrictions or support” at the moment. These comments contrasted with growing calls for greater easing within the crypto community, especially after the 0.25% rate cut in December.
Market watchers interpret this neutral stance as a pause that could reassure institutional cryptocurrency investors or limit any short-term stimulative effects on speculative assets like bitcoin. Besides that, <a target="_blank" href="https://bitwiseinvestments.com/crypto-market-insights/the-bitwise-vettafi-2025-benchmark-survey” data-wpel-link=”external” target=”_blank” rel=”nofollow external noopener noreferrer”>a recent survey conducted by Bitwise found that 56% of American financial advisors are more inclined to invest in cryptocurrencies since Trump's election victory. This revelation hints at a possible wave of new institutional capital entering the crypto space if the administration establishes supportive policies. Bitwise Chief Investment Officer Matt Hougan described the trend as “advisors are waking up to the potential of cryptocurrencies.”
On a less positive note, law enforcement news took center stage after <a target="_blank" href="https://cointelegraph.com/news/crypto-trading-wolf-capital-ceo-pleads-guilty-wire-fraud-charges-us-doj” data-wpel-link=”external” target=”_blank” rel=”nofollow external noopener noreferrer”>Wolf Capital co-founder pleads guilty to orchestrate a Ponzi scheme that defrauded more than 2,800 investors out of $9.4 million. Lead trader Travis Ford admitted to promising improbable daily returns of 1-2%, which equates to annual returns of over 500%. Instead of being invested wisely, much of the money went toward the personal enrichment of the conspirators. Ford now faces up to five years in prison for wire fraud conspiracy, reminding cryptocurrency enthusiasts of the persistent scams in the market.
Between the Fed's wait-and-see approach, growing interest from advisors and the warning of a Ponzi meltdown, the week underscored both optimism and the continued need for vigilance. As the market oscillates between euphoria and skepticism, regulatory developments and institutional trends remain key factors shaping the near-term outlook for cryptocurrencies.
Final thoughts
From Pudgy Penguins' token rally amid falling nft metrics to CryptoPunks IP rumors and the Federal Reserve's neutral stance, cryptocurrencies captured exciting gains and warning signs this week. Meme-driven volatility continues to shape nft collections, while political uncertainty hovers in the background.
Positive sentiment from advisors suggests growing widespread acceptance, but incidents like Wolf Capital's Ponzi filing underscore the risks. As market dynamics evolve, staying informed and exercising prudent judgment remain the keys to navigating the ups and downs of cryptocurrencies.
