Every Major Ethereum Token Airdropped in 2021 Is Down Over 50%

Key Takeaways

  • The Ethereum group has seen one other two airdrops over the previous few days, however each tokens have tanked since their launch.
  • Every different main airdrop on Ethereum in 2021 has led to an preliminary buzz in the market adopted by a selloff.
  • While different cash in the market have been recording new highs this week, all the main Ethereum tokens that launched with an airdrop this yr are down over 50%.

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Ethereum noticed a number of large token airdrops in 2021. Despite the preliminary hype surrounding probably the most anticipated airdrops of the yr, a lot of the tokens are down 50% or extra. 

Ethereum Tokens Suffer in Market Selloffs

Ethereum devotees maintain getting token airdrops, however the rewards hardly ever maintain their worth. 

Some of Ethereum’s most lively customers have acquired two separate token airdrops over the vacation season, sparking a frenzy inside the group. On Christmas Eve, OpenDAO distributed its SOS token after taking a snapshot of each Ethereum handle that had made a commerce on OpenSea. The token rallied all through Christmas Day as customers claimed their tokens, briefly bringing the mission’s market cap above $300 million. However, data from CoinGecko exhibits that it’s now down 63.7% from its highs, with one SOS buying and selling at $0.00000397. 

Earlier at present, Gas DAO launched with a token airdrop for Ethereum customers who had spent a minimum of $1,559 price of ETH on transaction charges. Gas DAO says that it desires “to be the heartbeat and voice of the Ethereum community’s lively customers by means of on and off-chain governance.” Despite some preliminary momentum on launch, Gas DAO’s GAS token is already down 77.1% on the day. 

While the selloffs that OpenDAO and Gas DAO have skilled are extra brutal than most tokens undergo, post-airdrop declines will not be unique to newer tasks. In truth, each main token that launched with an airdrop to Ethereum customers in 2021 is down over 50% at present. 

DeFi Favorites Plummet Following Airdrops

The Layer 2 derivatives trade dYdX launched its DYDX token in September in what was touted as one of many greatest token airdrops of the yr. DYDX initially traded at round $12 and gained momentum in the market in the weeks following its launch. Euphoria helped DYDX peak at $27.86 on Sep. 30 whereas ETH traded at round $2,850. In the 12 weeks since then, DYDX has printed 9 weekly lows, whereas ETH rallied to new highs and is at the moment buying and selling at round $3,800. DYDX is down 66.8% from its excessive. 

DYDX/USD (Source: CoinGecko)

Ethereum Name Service additionally launched a token this yr, producing an enormous buzz in the group on launch. After opening buying and selling at round $17, ENS soared to $83.40 inside two days. It then tumbled over the course of some days, and regardless of a reclaim of $75, it was hit by a selloff because the market began to droop on fears of the Omicron Covid pressure in December. It’s down 52.9% from its highs at present. 

ParaSwap, a decentralized trade aggregator that helps Ethereum, Polygon, Binance Smart Chain, and Avalanche, has additionally seen its market cap plummet over 80% because it launched a token, although the principle cause for the dramatic decline could also be its controversial token distribution methodology. ParaSwap launched PSP on Nov. 15 after weeks of hinting at an airdrop, however the strict eligibility standards meant that most of the protocol’s loyal customers had been excluded. As a consequence, the airdrop prompted a fierce backlash inside the DeFi group.

Ribbon Finance’s RBN can be down 63% from its highs; the options-based yield generator memorably suffered a wave of dangerous press following its token launch when it transpired that one in every of its backers, Divergence Ventures, had used insider data to “farm” $2.5 million price of tokens on a number of Ethereum wallets. One of the tokens that’s suffered hardest in the market is Ampleforth’s FORTH. Ampleforth distributed FORTH tokens to AMPL stakers again in April, rewarding some with a six-figure payout. It initially traded at simply over $55 and has since bled to $9.60. 

Although many Ethereum tokens are considerably down from their highs, the market has seen bullish worth motion in current weeks. Per information from CoinGecko, Curve’s CRV is buying and selling above $5, up 50.9% in the final two weeks. Convex Finance’s CVX is buying and selling at $48.82 after hitting an all-time excessive of $52.16 Monday. Alternative Layer 1 cash reminiscent of LUNA and NEAR have additionally recorded new document highs in the final week. Renewed curiosity in NFTs has additionally helped the worth of blue chip tasks like CryptoPunks and Mutant Ape Yacht Club climb over the previous few days. A choose variety of NFT collectors have additionally acquired airdrops this yr, although the worth motion for a lot of of them has differed from DeFi tasks like dYdX. Mutant Ape Yacht Club NFTs, as an illustration, launched after Bored Ape homeowners had been airdropped a serum NFT to show their character right into a Mutant Ape. Like Mutant Apes, the serums have held their worth. 

While devoted Ethereum customers have celebrated the most recent wave of airdrops with a lot extra rumored for 2022, the worth information exhibits that the market’s curiosity in a token doesn’t at all times final past the preliminary euphoria. 

Disclosure: At the time of writing, the writer of this characteristic owned ETH, ENS, DYDX, CRV, MATIC, and several other different cryptocurrencies. 

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