PENGU Token From Pudgy Penguins NFT Project Takes Crypto World by Storm, But Early Signs of Volatility Raise Questions for Cautious Traders

The newly launched PENGU token has taken the crypto world by storm. However, early signs of volatility raise questions for cautious traders.

Hotly anticipated, the PENGU token has finally hit the crypto scene with a bang. But early signs of volatility could leave cautious traders wondering.

Solana-based PENGU token scaled to an incredible $2.3 billion market cap within an hour of its launch. The Pudgy Penguins NFT project unveiled the PENGU token as its latest venture, and the token has already seen a remarkable surge of about 600% in just one day after the launch.

Explosive trading activity has also been observed, with a 24-hour trading volume of $2.57 billion, which is even higher than the token’s market cap. But what could this mean for PENGU traders?

PECU’s Meteoric Rise: A Cause for Concern

The PENGU token’s rapid ascent in the crypto market has brought attention to a key aspect of trading new tokens. Often, these tokens experience a trading volume that surpasses their market capitalization, which is currently the case with PENGU. While this generates significant market buzz, it also signals potential instability.

When trading volume is disproportionately higher than the market cap, it often leads to inflated market conditions. This can result in excessive leverage and speculative trading, with liquidity falling short of the volume being traded. Such conditions are prone to heightened volatility, exposing traders to severe risks of price swings.

Analysts advise exercising caution during these early days. While PENGU’s current trading frenzy may settle within a week as market conditions normalize, the token’s inflated activity poses short-term risks for traders.

The launch of the PENGU token was meticulously planned to benefit the community and encourage broader participation, as evidenced by the following:

This rollout has also boosted the Pudgy Penguins NFT market, with the collection’s floor price rising by 2.6% to 34.1 ETH ($136,000). Pudgy Penguins now ranks as the second-most expensive NFT collection, following closely behind CryptoPunks—a notable achievement, especially during a bear market.

Also Read: $PENGU Token Faces Massive Sell-off, $8.74M Sold So Newstable units:good