The post Lightspeed Newsletter: Solana airdrop season winding down appeared on BitcoinEthereumNews.com.

Today, enjoy the Lightspeed newsletter on Blockworks.co. Tomorrow, get the news delivered directly to your inbox. Subscribe to the Lightspeed newsletter. Howdy!  I’m down in Kentucky staying with family for a bit, and a family member approached me to ask what my new podcast was all about.  When I told him it was covering a blockchain and its ecosystem, he nodded in a way that let me know he won’t be tuning in. But for the rest of you, check out my first episode co-hosting the Lightspeed podcast! Anyways: Airdrop season winds down Crypto, and Solana in particular, saw a deluge of projects releasing native tokens since the start of the year. In recent days, the stream seems to have mostly dried up.  This airdrop season also generally coincided with a crypto bull run that saw the market come roaring back from a prolonged post-FTX stupor. In their first few months, the new token launches based in Solana were a mixed bag.  Jupiter’s JUP has been a bright spot, climbing roughly 25% from the time CoinGecko began tracking. Jito, Drift, and Pyth are all roughly flat since their launches. Kamino, Sanctum and Zeta all saw their token prices fall. Based on supply and demand dynamics alone, you’d expect tokens to shed price after airdrops — but that hasn’t kept recipients from vocalizing their grumpiness when their new coins dump.  Particular contempt has been aimed at so-called low float, high fully diluted valuation (FDV) tokens, which are tokens that can be theoretically worth billions in the aggregate but only see a small amount trading, meaning that the tokens will dilute over time.   Part of what allows projects like Jito and Jupiter to garner multiple billions of dollars-worth in FDV is the frothiness that comes with a bull market. As markets shrink and…

---

Filed under: News - @ August 6, 2024 8:14 pm