Ethereum NFT volume hits $186 million weekly high, driven by PENGU token launch

Ethereum NFT trading volume surged to $186 million last week, reaching a three-month high and marking a 67% increase from the previous week's $111 million. 

This growth contrasts with NFT activity on other chains. Bitcoin, the second-largest NFT ecosystem, records only $33 million in weekly volume.

The Pudgy Penguins collection emerged as the primary catalyst for this surge following its $PENGU token launch . The collection generated $108 million in trading volume, with individual penguins trading higher than  29 ETH before experiencing a sharp decline after the token's issuance.

The token distribution extended beyond Pudgy Penguin asset holders to include various eligible wallets from both Ethereum and Solana ecosystems, broadening its market impact.

The token launch appears to have triggered speculative interest across other prominent NFT collections.

Azuki and Doodles recorded notable increases in  trading activity , reaching $23 million and $17 million in volume, respectively, as traders positioned themselves for potential future token launches. This pattern suggests a market-wide shift in expectations around NFT tokenization strategies.

The concentration of trading volume on Ethereum underscores the network's continued dominance in the NFT space. While other chains have developed NFT ecosystems, the significant gap in trading volumes indicates that Ethereum remains the preferred platform for high-value NFT trading and new market developments.

As the market digests the Pudgy Penguins token launch, attention turns to whether other major collections will follow suit with their own tokenization strategies.

This is an excerpt from  The Block's Data Insights newsletter . Dig into the numbers making up the industry's most thought-provoking trends.