The NFT craze reignites as Pudgy Penguins (PENGU) faces new challenges.

[Coin World] Pudgy Penguins (PENGU) is facing pressure due to a surge in interest in NFTs (Non-Fungible Tokens). This could siphon funds away from popular meme coins, potentially impacting their prices. Meanwhile, investors are hoping for the launch of the PENGU ETF (Exchange-Traded Fund) following Canary Capital's application submitted in March. As NFT tokens attract more and more investment, PENGU is facing new competition. For months, since Canary Capital applied for the PENGU ETF, Pudgy Penguins meme coin has been the focus of attention. After Justin Sun joined, the hype surrounding the PENGU meme coin began to ramp up in late June. Amid the frenzy and hopes for the PENGU ETF, the token soared, with analysts expecting more gains. However, as interest in NFT tokens reignites, this optimism may no longer be sustainable.

During the weekend, Ethereum launched NFT Torch ahead of its 10th anniversary, rekindling interest in non-fungible tokens. This was followed by a buying frenzy for NFTs, with one wallet purchasing 48 CryptoPunk NFTs for $8.5 million. Analysts also pointed out that the speed of purchases has led to a surge in the floor price of CryptoPunk NFTs. According to a popular user, whales are showing confidence in traditional collectibles, outperforming other collectibles, indicating that the market may be shifting towards high-quality NFTs. Traditional NFT projects are seeing significant purchases and momentum.

According to data from the data platform, the NFT industry has outperformed the broader market, rising by over 200% last month. Notably, the growth in the NFT industry is more than three times that of the Ethereum market. Despite the euphoria surrounding PENGU and Pudgy Penguins NFTs, CryptoPunks leads the industry in market capitalization metrics. However, in terms of 24-hour sales metrics, BAYC (Bored Ape Yacht Club) and Mutant Ape Yacht Club face fierce competition.

The flow of funds indicates interest in NFT projects other than PENGU. Analysts are looking for opportunities similar to PENGU, with ANIME being a potential choice. A trader and popular user emphasized that ANIME is the best liquid NFT beta after the token recently hit bottom. Interest in the ANIME token may be attributed to the recent announcement by Animecoin regarding a collaboration with Burger King and Naruto, which is set to launch in the U.S. Although Animecoin has no direct ties to either potential partner, it may leverage Burger King and Naruto to attract anime fans. Meanwhile, other analysts have also pointed out that DOOD could be the next PENGU. Despite the lack of ETF prospects for the DOOD coin associated with the Doodles NFT project, analysts say it also has strong fundamentals. Notably, both DOOD and PENGU are Solana meme coins. PENGU benefits from ETF hype and whale purchases, with a supply of 76.70 billion. On the other hand, its RSI (Relative Strength Index) is above 80, indicating that the token may be overbought. Meanwhile, DOOD's smaller supply of 10.00 billion may imply greater price potential, with its RSI suggesting there is still room for further increases. Another NFT trader emphasized that Doodles NFT is outperforming the DOOD token, which could bode well for the price trend of meme coins.