Pudgy Penguins brought its NFT characters to the Las Vegas Sphere during Christmas week, projecting animated penguins across the venue’s vast exterior screens.
The animated display went live on Christmas Eve, taking advantage of the Sphere’s high-resolution LED panels visible throughout the Las Vefgas Strip.
In a post on X, Pudgy Penguins confirmed the activation marked one of its largest real-world brand showcases to date.
The project was founded in 2021 and later acquired in April 2022 by entrepreneur Luca Netz for 2.5 million Ether.
Following the acquisition, Netz shifted the project’s strategy beyond digital collectibles as NFT revenues began to decline.
The company expanded into physical consumer products, particularly toys, to create sustainable cash flow.
Toys generate significant revenue, but the margins are thin.
Luca Netz said, adding:
We’re selling millions of dollars’ worth of toys today, but it took time to scale into that business.
What began as a short-term survival strategy evolved into a core business line for Pudgy Penguins.
The company is now projected to close the year with an estimated $50 million in total revenue.
Pudgy Penguins has also focused heavily on social media marketing to build brand recognition beyond crypto-native audiences.
Its Instagram account has grown to around two million followers, reinforcing its presence in mainstream consumer culture.
The Sphere activation comes amid a challenging period for the broader NFT market in 2025.
NFT sales volumes dropped sharply in the first quarter, falling 63% year on year to $1.5 billion.
The downturn intensified in March as monthly sales plunged 76% compared with the same period last year.
Despite the market-wide decline, select collections such as Pudgy Penguins demonstrated relative resilience.
Data from CoinGecko showed total NFT market capitalisation slid to approximately $2.5 billion by December.
Analysts noted that real-world collectible-backed NFTs emerged as one of the few areas of growth in 2025.
Trading card platforms linking physical assets to blockchain tokens gained traction despite broader market weakness.
Courtyard.io stood out in this niche by tokenising authenticated Pokémon cards for trading or redemption.
According to CryptoSlam, Courtyard processed more than 230,000 transactions and generated roughly $13.9 million in sales over the past 30 days.
The cards you buy on Courtyard aren’t worth more because they’re NFTs.
Nicolas le Jeune said, adding:
The value is the underlying asset — the NFT just gives you a better way to experience it.
Industry observers said Pudgy Penguins’ Las Vegas display highlights how NFT brands are seeking relevance beyond purely digital spaces.
At the time of reporting, Ethereum price was $2,930.64.