In the crypto industry, the importance of timely decision-making regarding newly airdropped crypto tokens cannot be overstated.
Recent data from cryptocurrency data aggregator CoinGecko reveals that holding onto these tokens for more than 14 days can result in missed opportunities to sell at their all-time high.
A significant surge in airdrop interest was witnessed in 2020, with the most common method of receiving free airdropped tokens being participation in pre-launch blockchain network activities or promotional work.
A prime example of the potential of airdrops was showcased on February 1st, when a 17-year-old crypto investor reportedly earned over $1 million from the airdrop of the Solana-based Jupiter (JUP) token, as reported by Cointelegraph.
CoinGecko's report further highlights that in the last four years, around 46% of the top 50 crypto token airdrops, including notable tokens like Ethereum Name Service, Blur, and LooksRare, reached their peak prices within the first two weeks of launch.
The significance of making prompt decisions is underscored by the fact that 23 out of the 50 biggest airdrops recorded peak token prices during the initial 2 weeks of their airdrop date.
Tokens like Manta Network (MANTA), Anchor Protocol (ANC), and Heroes of Mavia (MAVIA) also experienced peak prices within this timeframe.
While some projects achieved peak gains within days, only one airdropped token out of the top 50 in the past four years took more than a year to reach its peak price. This emphasizes the importance of timing and market reception.
In 2021, 18 of the top 50 airdrops saw significant growth, marking a notable increase from the previous year.
However, the trend saw a decline in 2022 and 2023, potentially influenced by the prevailing crypto winter.
Despite this, the total value of airdrops at their all-time high grew from $7.28 billion in 2020 to $7.46 billion in 2022, demonstrating the evolving nature of the crypto market.
In 2023, the cumulative value of airdrops reached an impressive $4.56 billion, with major players like Arbitrum (ARB) distributing $1.97 billion worth of tokens.
Noteworthy distribution strategies, such as Celestia (TIA) and Blur, which focused on rewarding ecosystem participants rather than widespread users, showcasing a shift in tactics, were observed.
Blur's innovative approach with consecutive airdrops in 2023 highlighted the importance of continuous user engagement, while Uniswap's monumental $6.43 billion airdrop in 2020 set a new standard for DeFi platforms.
Other notable distributions include Apecoin (APE) and dYdX (DYDX), further demonstrating the potential of crypto airdrops in engaging users and driving interest in decentralized finance.
The leader of the pack, Uniswap (UNI), made waves with its monumental $6.43 billion airdrop on September 16, 2020.
Calculated at its all-time high (ATH) token price of $42.88, Uniswap's distribution became a pivotal moment for DeFi Summer, revitalizing the crypto-airdrop model first seen with Auroracoin in 2014.
This distribution not only rewarded its user base but also reignited interest in decentralized finance (DeFi) platforms.
Not far behind, Apecoin (APE) executed the second largest airdrop, doling out $3.54 billion in tokens on March 17, 2022.
To make the most out of crypto airdrops, investors need to stay up-to-date with the latest market trends and make informed decisions.
Timing their investments wisely is crucial to capitalize on the opportunities presented by airdropped tokens.