NFT Token Frenzy Threatens PENGU’s Meteoric Rally—Can It Survive the Capital Stampede?

The NFT gold rush is back—and this time, it's gunning for PENGU's throne.

As speculative capital floods into niche tokens, the high-flying memecoin faces its first real stress test since hitting all-time highs. Traders are rotating out of 'old internet money' into digital collectibles at a pace not seen since the 2021 bubble.

Here's why the smart money's watching three make-or-break levels...

Support or collapse? PENGU's chart tells the tale

The token's 30-day volatility spiked 150% as NFT trading volumes doubled—classic 'risk-on' behavior that leaves less oxygen for meme plays. Whales are reportedly parking profits from PENGU into blue-chip NFTs, creating a vicious cycle.

Meanwhile, retail FOMO reaches dangerous levels (again).

One cynical take? This is just hedge funds doing what they do best—pumping liquidity into whichever asset class has the loosest valuation metrics. Today's NFT darling is tomorrow's bagholder buffet.

Will PENGU holders hodl through the storm—or will this end in another 'wen lambo' graveyard? Place your bets.

PENGU Faces New Competition as NFT Tokens Attract Growing Investment

Pudgy Penguins meme coin has been the center of attention for months, since Canary Capital filed for a PENGU ETF. HYPE around the PENGU meme coin invigorated in late June, following Justin Sun’s move to join the huddle.  

Amidst the frenzy and hopes for a PENGU ETF, the token soared, with analysts projecting even more gains. However, the Optimism may no longer be sustainable amid renewed interest in NFT tokens.

Over the weekend, ethereum ignited renewed interest in non-fungible tokens, unveiling the NFT Torch ahead of its 10th anniversary. With it came a frenzy of NFT buying, with a single wallet scooping 48 CryptoPunk NFTs for $8.5 million.

Analysts also noted an acceleration in the purchases, causing a surge in the CryptoPunk NFT floor price. According to Shotgun, a popular user on X (Twitter), whales are showing conviction with legacy collections outperforming, suggesting the market may be rotating back to quality NFTs.

88 Punks sold in the past 24h, and the floor jumped to 47.75 ETH (~$180K).

Here’s what happened ⤸

A single whale swept 45 CryptoPunks (worth ~$7.8M), igniting a 15.9% floor surge from ~40.9 to 47.75 ETH.

Add in another 43 organic sales, and we’re looking at 88 total Punks… pic.twitter.com/6UDKWJ9jih

Legacy NFT projects are getting heavy buys and pumps. According to data on Artemis, the NFT sector is already outperforming the broader market, rising by over 200% in the last month. Notably, the NFT sector has more than tripled the Ethereum market.

Despite the euphoria around PENGU and Pudgy Penguins NFTs, CryptoPunks are leading the sector in market capitalization metrics.

However, on 24-hour sales metrics, BAYC (Bored APE Yacht Club) and Mutant Ape Yacht Club face stiff competition.

Capital Flows Signal Appetite for Other NFT Projects Beyond PENGU

Analysts are looking for PENGU-like opportunities, with ANIME as a prospective choice. Tommy, a trader and popular user on X, highlights ANIME as the best liquid NFT beta after the token bottomed out recently.

Thesis on why I took a position in $ANIME.

Chart looks close to bottomed out. Its real ATH was 1.8B FDV, sitting at 200M FDV (114M MC).

IMO, it's the best liquid NFT beta currently.$PENGU has been rallying for days while Azuki's coin hasn't seen much PA. pic.twitter.com/2grLA3fugt

The interest in the ANIME token may be ascribed to Animecoin’s recent announcement involving a Burger King and Naruto collaboration coming to the US.

“Starting July 21, fans can grab a limited-edition King Jr. Meal with exclusive Naruto character toys. American companies are waking up: adopt anime or be left behind,” Animecoin shared in a post.

While Animecoin does not have any direct affiliations with either party in the prospective partnership, it may be leveraging Burger King and Naruto to target anime fans.

Meanwhile, other analysts have also highlighted DOOD as a possible next PENGU. Despite no ETF prospects for the DOOD coin, which is associated with the Doodles NFT project, analysts say it also has strong fundamentals.

“PENGU’s at $2B+ market cap, but DOOD’s $32M FDV is a hidden gem with big upside,” one user said in a post.

Notably, both DOOD and PENGU are solana meme coins. PENGU benefits from the ETF buzz and whale buys. It also has a supply of 76.7 billion. On the other hand, its RSI (Relative Strength Index) above 80 suggests the token may be overbought.

Meanwhile, DOOD’s smaller supply of 10 billion could mean bigger price potential, with its RSI suggesting still more room for further upside.

“DOOD’s low FDV makes it undervalued vs PENGU. Doodles’ NFT brand has strong vibes. If Doodles drops partnerships or listings, DOOD could 10x from its $300M FDV potential. DOOD’s edge: tiny supply, strong community, & untapped potential. If it follows $PENGU’ IP meta, it’s a moonshot,” the trader added.

Another NFT trader highlighted that Doodles NFT outperformed the DOOD token, which could bode well for the meme coin’s price.

“Every time it was the token moving and the NFTs following, be it the ANIME coin, PENGU etc.,” they stated.