NFT Market Crash? Penguins Don’t Care

Introduction: When the Floor Drops, the Igloo Holds

The NFT market in 2025 isn’t what it used to be. Volumes are down, floors have cratered, and even blue-chip projects are fighting for attention.

But one group doesn’t seem to care — or slow down.

Pudgy Penguins, the once-memed, now-iconic NFT collection, continues to build, ship, and expand despite the ongoing bear cycle. While other projects are caught in Discord death spirals or pivoting to AI startups, the Penguins are selling toys at Walmart, launching licensing platforms, and becoming a cultural brand beyond the blockchain.

Here’s why they’re thriving — and what other NFT projects should learn.

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1. The State of the NFT Market in 2025

Let’s set the scene:

• OpenSea volume is down 65% YoY
• Blur’s incentives dried up and liquidity followed
• Floor prices of even “elite” PFPs are down 70–90%
• New mint hype is near-zero

Everyone’s asking: Is the NFT era over?

Meanwhile, Pudgy Penguins:

• Announced a kid’s show deal
• Expanded their toy line to 2,000+ Walmart stores
• Hit over $12M in physical merch revenue

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2. IRL > JPGs: The Walmart Power Move

In late 2023, Pudgy Penguins launched physical toys — plushies, figurines, and accessories — and quietly entered the mass retail game.

Now in 2025:

• They’ve gone global with distributors in Asia and Europe
• Toys include QR codes that link to digital NFT experiences
• Pudgy World (their metaverse) integrates toy-linked avatars

This is IP expansion done right — NFT-native, but IRL-optimized.

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3. Licensing-as-a-Service: Turning Penguins into Platforms

Penguins aren’t just selling products — they’re building infrastructure:

• A new licensing portal lets NFT holders submit their Penguins for brand deals
• Penguins have appeared in apparel, snack boxes, and mobile games
• Revenue splits create passive income for holders

While other projects focus on staking or tokenomics, Pudgy leans into real-world monetization.

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4. Community Still Matters (But Less Discord, More Culture)

The Penguins didn’t abandon Web3:

• They host IRL meetups and city pop-ups
• They keep IP-friendly memes flowing across TikTok and X
• They’ve moved from “grind to whitelist” to organic fandom loops

Community engagement feels more like hypebeast culture than DAO debates — and that’s intentional.

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5. The Contrast: Other Projects Are Still Flailing

Compare this to:

• CloneX pivoting to AI fashion with minimal holder benefit
• Doodles spinning into animated IP with closed off community access
• Moonbirds… are Moonbirds still a thing?

While most NFT brands are still figuring out “what next?”, Pudgy has quietly crossed into the mainstream.

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6. Why It Works: Lean Team, Brand Focus, No Token

Key lessons from the Penguins:

• Keep teams small and focused
• Don’t overtokenize — there’s still no native $PENGU token
• Expand IP through real partnerships, not hype cycles

They’re not the loudest — but they ship. Consistently.

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Conclusion: In a Cold Market, Penguins Stay Warm

The NFT hype cycle may have crashed — but not all projects did.

Pudgy Penguins proves that you don’t need tokenomics wizardry or VR headsets to survive. You just need product-market fit, community DNA, and a roadmap that exists off-chain.

The metaverse may be melting. But the Penguins? They’re chilling.