This is Why Majority of Airdrop Tokens Crash Within 15 Days
The post This is Why Majority of Airdrop Tokens Crash Within 15 Days appeared on BitcoinEthereumNews.com.
Crypto airdrops, a strategy prevalent since 2017 for distributing tokens and stirring early enthusiasm, are increasingly facing challenges. Despite initial excitement, a recent study by KeyRock Trading highlights that there is a downturn in token performance shortly after listing. Moreover, many airdrop tokens fail to sustain long-term interest or value. Airdrop Token Performance Analyzed The study, which analyzed 62 airdrops across six blockchain networks throughout 2024, paints a stark picture of the effectiveness of these campaigns. Notably, after 90 days, 88.7% of the tokens analyzed showed a decline in price, with only a handful showing resilience. Read more: Earning Passive Income with Forks and Airdrops in 2024 In the crypto ecosystem, airdrops are a way to boost protocol engagement and widen token distribution. However, the oversaturation of such strategies seems to have diluted their impact, leading to decreased community retention and sometimes even protocol abandonment. “Looking at price action over 15, 30, and 90 days, it becomes evident that the majority of price movement occurs in the earliest days following the airdrop. After three months, few tokens manage to return a positive result, with only a handful bucking this trend,” Keyrock said. Airdrop Price Performance After 15, 30, and 90 Days of Listing. Source: Keyrock Interestingly, while the overall performance of airdrops paints a bleak picture, not all results were uniformly disappointing. The data revealed that outcomes varied significantly between different blockchains. For instance, Ethereum and Solana stood out, with 14.8% and 25% of their respective airdrops maintaining or increasing in value after three months. Conversely, other networks like BNB, Starknet, Arbitrum, Merlin, Blast, Mode, and ZkSync saw no airdrops with positive outcomes. The disparity in performance among chains highlights the influence of network preference and user base characteristics. Solana, gaining popularity as a retail favorite and a serious contender…
Filed under: News - @ September 26, 2024 7:27 am