A recent report reveals that most crypto airdrop tokens lose value within 15 days of being listed. While once a popular strategy to boost excitement and engagement, airdrops are now facing increasing difficulties.Â
Crypto market maker KeyRock Trading studied 62 airdrops across six different blockchains. Their findings show that 88.7% of these tokens saw their prices drop within 90 days of launch. Only a few managed to maintain or increase their value.Â
Airdrops have been used since 2017 to expand token distribution and attract users to new projects. However, the market seems oversaturated, leading to less interest and, in some cases, the eventual failure of the projects themselves.Â
Despite this general trend, not all blockchains performed poorly. Ethereum and Solana saw better results. About 14.8% of Ethereum-based airdrops and 25% of Solana’s maintained or increased in value after three months. Other blockchains, like BNB and Arbitrum, saw none of their airdrop tokens perform well.Â
The report suggests that the size of an airdrop also affects its long-term success. Smaller airdrops, distributing less than 5% of the total token supply, performed well at first, likely due to lower sell pressure. However, their success was often short-lived, with significant price drops after three months.Â
Medium-sized airdrops, distributing between 5% and 10%, showed slightly better retention and long-term performance. The best results came from large airdrops, distributing more than 10% of the token supply. These airdrops fostered stronger community engagement and helped stabilize token prices over time.Â
As the crypto market evolves, it seems that bigger airdrops, backed by strong communities, may offer a better path to long-term token success.Â
