Pudgy Penguins' PENGU Token Doubles in a Week Amid ETF Hype – Decrypt

The Pudgy Penguins-themed meme coin, PENGU, has surged over 100% prior to now week, fueled by ETF chatter and a push on social media—however analysts are questioning whether or not the rally is constructed to final.

PENGU is at present buying and selling at just below $0.031, up 9.7% within the final 24 hours and 101% on the week, in keeping with CoinGecko knowledge.

The rally comes simply weeks after the U.S. SEC added new filings to its docket, together with a 19b-4 software from Cboe to permit buying and selling of the Canary PENGU ETF.

Canary Capital first filed for the product in March because the SEC weighs over two dozen altcoin ETF proposals, together with for Solana (SOL), XRP, and Dogecoin (DOGE).

Regardless of its spectacular positive aspects, specialists stay divided on whether or not PENGU can preserve its momentum.

Min Jung, an analyst at algorithmic buying and selling agency Presto Analysis, stated that regardless that fundamentals stay skinny, PENGU’s worth motion hasn’t been fully erratic.

Jung informed Decrypt that PENGU’s achieve is “possible fueled by potential ETF approval hype and main crypto gamers like OpenSea and Coinbase altering their profile photos to Pengu NFTs.”

PENGU obtained an additional increase final Friday when main crypto change Coinbase modified its X profile image to a Pudgy Penguins NFT, triggering bullish sentiment.

The profile change got here throughout a quick account takeover by Alex A., who beforehand spent 4 years main social media and group at Binance and now serves as Coinbase’s Crypto Twitter Lead, tasked with strengthening public messaging and group engagement.

“The rise in Pengu has been comparatively regular fairly than a sudden spike on information,” Jung stated, suggesting the rally extends past mere ETF hypothesis.

Nevertheless, the analyst remained cautious about long-term sustainability, saying the meme coin “seems well-positioned to experience the present wave so long as Bitcoin and the broader crypto market preserve their bullish momentum.”

In the meantime, Bitcoin (BTC), which broke previous $123,000 on Monday, has dipped 4% within the final 24 hours to $117,000, per CoinGecko knowledge.

But institutional flows stay sturdy, with spot Bitcoin ETFs logging $2.7 billion in inflows final week, per Farside Traders knowledge.

Will a PENGU ETF occur?

Arjun Vijay, founding father of crypto change Giottus, questioned the basic worth proposition behind the proposed PENGU ETF.

“I see restricted sensible use for an ETF on this context, as ETFs usually cater to massive institutional traders,” Vijay informed Decrypt. “Provided that even established cryptocurrencies like Dogecoin lack an ETF, the case for a PENGU ETF appears tenuous.”

On prediction markets platform Myriad, developed by Decrypt’s father or mother firm DASTAN, customers don’t anticipate a PENGU ETF to be permitted earlier than October, with 58.5% voting towards it, whereas 41.5% consider it would go in time.

“I don’t suppose so,” stated Vijay, when requested whether or not the PENGU coin can preserve its trajectory.

“The coin lacks fundamentals or use case,” he stated. “It’s simply one other meme coin which is creating narratives. Narratives are momentary in nature.”

Nonetheless, he cautioned, buying and selling on hype alone doesn’t at all times result in collapse, with “zombie cash like Ethereum Basic, LTC, BCH nonetheless at billion-dollar valuations.”