Pudgy Penguins, a popularNon-Fungible Token(NFT) project, has seen its floor price soar to a new all-time high (ATH). This hand-drawn collection of 8,888 comic penguins has emerged as theworld’s second most valuableNFT collection, with a floor price of over $100,000.

This surge has put the collection ahead of the once-dominant Bored Apes Yacht Club (BAYC), marking a major turning point in the NFT market. While many NFT projects are struggling in a quiet market, Pudgy Penguins comes off as a beacon of hope for Web3.

Pudgy Penguins Make a Big Splash in the NFT World

Pudgy Penguins, launched in 2021, has defied expectations in an industry where many projects have come and gone without leaving a lasting impact. As of this week, the minimum price for any of the NFTs in the collection soared to over $100,000, more than the current value of a BitcoinBTC$100 53124h volatility:0.2%Market cap:$1.99 TVol. 24h:$90.89 B.

Despite this high valuation, the NFT trails behind CryptoPunks, the most valuable collection in the NFT market. This surge comes after Pudgy Penguins floor price rose by 76%, hitting over 26 EthereumETH$3 91424h volatility:0.1%Market cap:$471.01 BVol. 24h:$44.33 Bjust last week.

Notably, the “floor price” in the NFT world is the lowest amount a piece in any collection can be sold for. Unlike stocks, the floor price is set by owners based on the rarity and demand for the NFTs. The floor price goes up when demand increases, just as seen with Pudgy Penguins.

In contrast to Pudgy Penguin’s price, both BAYC and CryptoPunks saw a 12% drop in the same period. The Pudgy Penguins’ sudden surge has sparked a renewed interest in the collection. Its success has attracted new buyers and current owners eager to keep their assets.

This sudden shift is not just about market forces but demand. The digital collectibles grabbed attention when its team announced plans to launch the PENGU token on the Solana blockchain by year-end.

The token allocation strategy gives a large share to current NFT holders, encouraging owners to keep or buy more collectibles. As a result, demand for Pudgy Penguins has surged.

23.5% of the 88 billion PENGU tokens are reserved for the NFT community, with more for Solana and Ethereum ecosystems.

Strategic Expansion into the Physical World

What sets Pudgy Penguins apart from many other NFT projects is their ability to expand beyond the digital realm. Parent company Igloo has successfully bridged the gap between NFTs and physical products when it launched Pudgy Toys.

The toy line, which includes plushies and collectible igloos, has seen tremendous success. Pudgy Toys has grossed over $10 million in sales through major retailers likeWalmart, Target, Amazon, and Walgreens.

Pudgy Penguins’ move into physical products has attracted new collectors who weren’t initially interested in NFTs.