While the majority of coins, including Bitcoin (BTC), are in the red following the Senate’s passage of President Donald Trump’s ‘Big, Beautiful Bill’ and escalating tensions between Trump and Elon Musk, PENGU has bucked the trend.

Over the past week, it has risen 56.2%, outperforming the broader market. This has led analysts to speculate that PENGU could be on the verge of a rally similar to what happened with Pepe (PEPE).

Why is PENGU’s Price Rising?

Pudgy Penguins (PENGU), a Solana-based meme coin tied to the popular Pudgy Penguins NFT collection, has been on a notable rally for over a week. According to data from BeInCrypto, it was trading at $0.015 at press time. This represented an appreciation of 8.58% over the past day alone. 

At the same time, the total crypto market capitalization has dipped 3.18%, highlighting PENGU’s strength in a market otherwise in decline. Moreover, the altcoin has also secured a spot among the top trending coins on CoinGecko.

But what’s causing this massive rise? Several factors could be contributing to PENGU’s performance. First, the NFT market is showing strong growth overall. According to Artemis data, NFT has been the top-performing sector over the last week, with a 33.8% uptick. 

Additionally, interest in Pudgy Penguins is notably high. As per Cryptoslam, the trading volume of Pudgy Penguins NFTs is up 157% over the past 24 hours.

Meanwhile, institutional interest in the meme coin is also growing. Last week, Cboe BZX filed a 19b-4 form with the SEC to list and trade shares of Canary Capital’s proposed PENGU ETF.

“With this filing, the PENGU and Pudgy Penguins NFTs ETF becomes only the second meme coin-style ETF, after DOGE, and first filing with NFTs to enter the SEC’s formal review process, joining coins such as BTC, SOL, XRP, and DOGE,” an analyst wrote.

Additionally, PENGU’s availability on RevolutApp has significantly increased its accessibility. The mascot’s appearance at NASDAQ alongside VanEck, a major asset management firm, has also amplified its visibility. 

Furthermore, the team is preparing to launch a mobile game, Pudgy Party, which could again draw substantial interest.

“Real studio. Real game. Built for a mainstream audience. Penguins everywhere. Don’t be surprised when it tops the App Store,” a product designer, Steve, stated.

But that’s not all. This increased attention has translated into actual accumulation. On-chain data from Nansen indicated significant whale activity. Over the past week, wallets holding over $1 million in tokens have acquired 240 million PENGU tokens. This is a bullish signal that suggests large investors anticipate further gains.

Could PENGU Be the Next PEPE? 

Amid these catalysts and strong price growth, analysts are drawing parallels to the explosive rally of PEPE, another meme coin that experienced a dramatic surge in 2024.

Posts on X (formerly Twitter) highlight optimism, with some market watchers suggesting PENGU’s viral potential could mirror PEPE’s trajectory. 

“Many aren’t ready for what PENGU is about to pull. The similarities with PEPE chart is uncanny. The narrative and momentum is there. The stars have never been so aligned,” an analyst posted.

Another analyst highlighted that the conditions for a short squeeze on PENGU are aligning. This could drive the price of the meme coin even higher.

“Chart looks amazing & funding flipping super negative. Think this rips soon,” he said.

Thus, while the current conditions appear favorable, whether PENGU can sustain its upward trend or replicate PEPE’s success remains to be seen.