A new report from KeyRock reveals that nearly 89% of airdrop tokens lose value within 90 days, with the majority experiencing price drops within the first 15 days of trading. The study, which analyzed 62 airdrops across six blockchain networks in 2024, highlights the growing challenges of this token distribution method.
Ethereum and Solana Show Better Resilience
While most airdrops saw their value decline, Ethereum and Solana tokens were the most resilient, with up to 25% of airdropped tokens maintaining or increasing in value over a three-month period. Other networks, such as BNB, Arbitrum, and ZkSync, showed no positive outcomes, with all tokens losing value shortly after their launch.
Larger Airdrops Perform Better Over Time
The study also found that larger airdrops, where more than 10% of the total token supply is distributed, tend to perform better in the long term. These larger distributions help build stronger community ownership, reducing price volatility and encouraging long-term engagement. Smaller airdrops, while often creating initial excitement, tend to see rapid price drops as early participants sell their tokens.
KeyRock’s findings suggest that while airdrops remain a popular tool for launching new tokens, their effectiveness is becoming increasingly unpredictable. The report concludes that success depends on factors such as token supply size, blockchain network, and community engagement.
Source: CoinPaprika
