Pudgy Penguins — Layer-2 NFT brand with expansion

Pudgy Penguins — An NFT brand with Layer-2 and global expansion

The meteoric rise of Pudgy Penguins this summer sparked a new wave of discussions about the possible revival of the entire NFT sector.

After the collapse of 2022, the non-fungible token (NFT) market is now in the recovery phase. It is gradually moving toward maturity, focusing on increasing real-world applicability. While most NFT projects continue to drift within the crypto community, shifting their emphasis from speculative collecting to practical benefits, Pudgy Penguins took off and became a global brand worth billions.

The Pudgy Penguins token (PENGU) quickly took fourth place in market capitalization among memecoins and simultaneously entered the top 50 cryptocurrencies worldwide.
A 546% price surge in less than four weeks made PENGU one of the fastest-growing altcoins of the new season.
According to DappRadar, Pudgy Penguins have had the highest transaction volume of any NFT over the past 30 days.
CoinMarketCap ranks PENGU as the highest-ranked NFT because it is in the top 50 of all cryptocurrencies.

Let’s figure out what makes the Pudgy Penguins NFT unique and successful and how the team plans to develop it in the future.

Pudgy Penguins NFT: What is it?

Pudgy Penguins is a collection of 8,888 digital penguins on the Ethereum blockchain. It has grown from an internet meme into a full-fledged ecosystem with real-world products, partnerships with companies, and active implementation of technologies. Unlike similar collections, Pudgy Penguins has a long-term strategy. They are more than just “pictures on the internet”; they are a full-fledged NFT brand with a Layer 2 scaling solution, Web3 integration, participation in major media projects, and the sale of colorful physical toys and merchandise on the global market. This approach has made Pudgy Penguins a notable player in both the crypto industry and offline business.

History and Formation

The Pudgy Penguins collection began in the summer of 2021 when four students from the United States decided to create an NFT collection of cute penguins. The collection sold out in 20 minutes and immediately appeared on the OpenSea trends. In 2022, project management passed to Luca Netz, a young and talented entrepreneur who bought it for 750 ETH. At that time, Pudgy Penguins was experiencing serious trust issues within the community. There were rumors that the founders had stolen funds, and the project was at risk of ending in scandal.

Under the leadership of the new CEO, however, the startup transformed from a speculative NFT project into a full-fledged product with a clear business strategy: a cryptocurrency brand for consumers. The situation began to develop rapidly.

Plush toys were launched in Walmart, Amazon, Target, and other retail chains. Sales of the toys in the first year brought in more than $10 million.
At the end of last year, Pudgy Penguins held an airdrop of PENGU tokens issued on Solana, and today, the cryptocurrency’s market capitalization is nearly $2 billion.
In March 2025, Canary Capital submitted a proposal to the SEC for the approval of a spot ETF for PENGU and NFT Pudgy Penguins. This is the first application of its kind to inсlude NFTs. As of this writing, the application is scheduled for review on October 12, 2025.
Another Netz project is Abstract, a Layer-2 solution based on chain abstraction principles. In addition to improving scalability, increasing speed, and reducing gas costs, its main goal is to drive mass adoption of Web3 and demonstrate how digital property can integrate with physical retail.

These developments reflect a strong, well-thought-out strategy and indicate strong fundamentals. While PENGU may face short-term volatility, further retail adoption and the launch of Abstract could attract new investors in the medium to long term, reinforcing the most optimistic forecasts.

Another strength of the project is its unique community engagement. Pudgy Penguins’ marketing strategy is distinguished by its “warmth”: the emphasis is on humor and the image of friendly penguins. For instance, on X, the community organized flash mobs with penguin avatars, and on Discord, they created themed rooms where fans shared jokes and fan art. The term “Pengu vibes” emerged to describe the friendly, soulful atmosphere surrounding the project. The core of the community formed on Discord and Twitter, and later, activity shifted to Instagram. This approach ensured Pudgy Penguins’ success on social networks and made the project noticeable to a mass Web2 audience far from cryptocurrencies.

Layer-2 as the Basis for Scaling

As the Pudgy Penguins collection grew in popularity, it became clear that Ethereum’s high fees and network congestion were hindering the growth of the community. That’s why the team decided to use Layer 2 to scale NFTs and improve the user experience.

How does Layer 2 improve the NFT user experience?

Transactions are almost instantaneous.
Collectibles can be exchanged for fractions of a cent.
New scenarios, such as micropayments, are opening up.

As a result, Igloo Inc., led by CEO Luca Netz, announced the development of an advanced Layer-2 solution called Abstract Chain, which aims to take the user experience to the next level. Abstract uses the ZK stack from zkSync and EigenDA, emphasizing chain abstraction and user-friendly functionality. Zero-knowledge proof ensures secure and efficient transaction processing. EigenDA, as a data availability layer, increases scalability and reduces zk-rollup costs. Chain abstraction simplifies the user experience, making the technology accessible to those unfamiliar with Web3.

Global Brand Expansion

Pudgy Penguins has become one of the few NFT projects to successfully expand beyond the digital space. While most of the collection remains online, this expansion covers the offline market, strategic partnerships, and a large-scale media presence.

Pudgy Penguins and physical toys

A key step was launching a line of toys sold through the largest retail chains. These are not just souvenirs; each figurine has a unique QR code that leads to the Pudgy World ecosystem. By scanning the code, buyers get access to the NFT metadata associated with their toy. This metadata includes a unique digital penguin avatar, the ability to customize its appearance, and additional items for the metaverse, such as clothes, accessories, and emotes. It also includes achievements assigned to the owner on the blockchain. Thus, a traditional toy purchase becomes an entry point to Web3, and an offline product becomes a “key” to digital content. This relationship best demonstrates how Pudgy Penguins entered the global market by combining the toy industry and NFT mechanics.

Partnerships and collaborations

An important growth factor for Pudgy Penguins is their partnerships with brands. For example, the team entered into an agreement with Retail Monster, resulting in a line of merchandise featuring penguin symbols, including clothing, accessories, and toys. The project also launched children’s books and comics featuring the collection’s characters, allowing it to expand its audience beyond the cryptosphere. Pudgy Penguins have collaborated with Paramount on promotional campaigns and participated in discussions about creating animated shows. Separate Pudgy Penguins collaborations with well-known companies inсlude a joint launch of a blaster with Gel Blaster and promotional campaigns in the fast-moving consumer goods (FMCG) segment with Kellogg’s support. These steps anchor the brand in popular culture, showing that Pudgy Penguins are more than just NFT art.

The Economy and Investment Attractiveness

Since the collection’s launch in 2021, it has shown impressive dynamics. The minimum price (floor price) on OpenSea increased from 0.03 ETH to over 20 ETH at its peak. From 2023 to 2024, the collection stabilized at 4–6 ETH. By mid-2025, it began rising again, reaching around 12 ETH. This confirms the steady growth of Pudgy Penguins NFT prices. During the market correction, Pudgy Penguins even overtook Bored Ape Yacht Club, confirming the brand’s high popularity.

The team is actively developing exclusive Pudgy Penguins collections, such as Pudgy Rods and Lil Pudgys. These collections offer owners additional rights and create a secondary market. These collections strengthen community loyalty and create long-term value mechanisms. Analysts also note that the project’s connection with a physical business makes it resistant to crypto volatility.

The prospects are positive: the global distribution of the brand and the Web3 integration of Pudgy Penguins allow us to expect an increase in audience size and a strengthening of its position in the global market.

Pudgy Penguins in the Context of Web3

Pudgy Penguins are actively developing in the Web3 direction, opening up new opportunities for users and collectors. Integrating Pudgy Penguins into the Web3 ecosystem enables interaction with other NFT projects, DeFi platforms, and gaming applications, facilitating the use of tokens in unique scenarios.

The project has implemented several Web3 integrations for Pudgy Penguins. NFT owners can receive bonuses in partner games, use penguins in metaverses, and attend exclusive digital events. In the metaverses of The Sandbox and Decentraland, for example, penguins can serve as avatars and in-game objects, and rare NFTs grant access to exclusive zones and events.

In 2024, the project partnered with Mythical Games to develop gaming products. This collaboration paved the way for integrating NFT penguins into game mechanics on the Mythical Platform, combining collectible characters with play-to-earn scenarios. The first result of this collaboration was the launch of Pudgy Party, a multiplayer minigame with competitive elements and avatar customization. In this game, NFT owners can use their penguins.

A separate project, the Pudgy World metaverse, is also in development and is currently in closed beta testing. It is a social and gaming environment on the blockchain where users can create and customize their own 3D penguins with NFT attributes and interact with other players. In addition to gamification, the project is developing social mechanics. NFTs participate in voting, quests, and special loyalty programs.

These stages of development demonstrate that Pudgy Penguins’ future in the global market is closely tied to its full integration into the Web3 space. Thus, the penguin NFTs are evolving from a digital art collection into a fully-fledged Web3 brand with multi-platform value and the ability to scale globally.

Conclusion

The global expansion of the Pudgy Penguins NFT brand shows that NFTs can be a legitimate brand. Pudgy Penguins’ economic model demonstrates how the integration of technology and marketing can create long-term value. The project’s future looks promising: the team continues to develop in Web3, expand its offline presence, and strengthen the brand, thereby increasing its appeal to collectors and investors alike.

Thank you for your attention. Invest safely and profitably!

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FAQ

What are Pudgy Penguins, and why did they become popular?

They are a collection of digital penguins that quickly evolved from an internet meme into a full-fledged brand. Their popularity was ensured by an active community and a competent marketing strategy.

How do Layer-2 technologies help develop NFT projects?

Using Layer-2 solutions for NFT projects reduces fees, speeds up transactions, and makes token exchange accessible to a wide audience. Additionally, Layer-2’s role in reducing NFT transaction fees is crucial for increasing liquidity.

What is Pudgy Penguins’ global expansion strategy?

The project is developing Pudgy Penguins’ global presence through physical toys, merchandise, books, and comics, as well as partnerships with well-known companies.

Where can I buy Pudgy Penguins NFTs?

On popular platforms such as OpenSea, Blur, and Magic Eden, as well as on centralized exchanges. Information on the purchase process can be found in the “How to Buy Pudgy Penguins NFT” section of your chosen platform.