A Study Reveals the Fate of Tokens Airdropped in 2024

Token Airdrops and Price Trends

A recent analysis by Keyrock unveils that 88% of tokens distributed through airdrops in 2024 have faced price declines, with many experiencing significant crashes within a short period after launch.

Early Price Movement

Keyrock’s report indicates that the most substantial price movement occurs shortly after the airdrop distribution, with only a few tokens managing to show positive results after three months.

Factors Influencing Airdrop Success

Contrary to expectations, the size of the airdrop does not necessarily determine its market performance. The crucial factor affecting the success of an airdropped token is its fully diluted valuation (FDV), representing the total market value if all tokens were in circulation.

Challenges with High FDVs

Projects with inflated FDVs often struggle to maintain momentum, as the perceived potential gains become limited. Additionally, tokens with high FDVs may lack the necessary liquidity to support their valuations, making them susceptible to sell pressure.

Success Stories and Failures

Keyrock’s study highlights successful airdrops, such as Solana’s DRIFT token, which demonstrated a thoughtful distribution strategy and modest launch value. On the other hand, ZkLend’s ZEND token had a poor performance due to its high launch value and lack of brand recognition.

Lessons Learned

The case of ZkLend serves as a reminder that while airdrops can attract users, they do not guarantee long-term value or community sustainability. Building a strong brand and utility is essential for the success of a token, regardless of its distribution method.

Cryptocurrency Market Update

• Bitcoin is currently trading at $63,515, up 0.4% in the last 24 hours.
• Ethereum’s price stands at $2,600, reflecting a 0.6% decrease over the same period.

Further Reading

For more insights on DeFi and cryptocurrency trends, get in touch with Tim Craig, our DeFi Correspondent based in Edinburgh at [email protected].