Cryptocurrency airdrops will face growing challenges in 2024, with high unclaimed values, a decline in token value after the airdrop, and growing user dissatisfaction, reported AirdropBee, a discovery platform for drop hunters. air.
What is the meaning: Airdrops, once a key strategy for crypto projects, are facing increasing scrutiny due to increasing speculative behavior, market instability, and declining interest, raising questions about their future effectiveness in user acquisition and project sustainability.
Key details: AirdropBee found that while airdrops drive short-term user engagement and total value locked (TVL) growth, they often lead to high rates of token dumping and a long-term decline in value.
- The study highlighted a record $20.6 billion in airdrop value in 2024, but also noted challenges such as $45 billion in unclaimed rewards.
- There is also a decline in the average airdrop value per project, prompting calls for more sustainable airdrop strategies.
The numbers:
- 88% of crypto projects in 2024 used airdrops.
- 199 million The participants were attracted.
- About 45% more compared to 135.8 million airdrop hunters in 2022.
- 64% of recipients sold tokens immediately at the token generation event (TGE).
- 66% of projects experienced drops in token prices after the airdrop.
- Losses ranged from 23% in the first week to 82% in six months.
Other findings:
- Annual growth: The value of airdrop has grown significantly, from $189.7 million in 2018 to $12.64 billion during the 2021 bull run, peaking at $20.60 billion in 2024.
- Decreased average airdrop value: By 2024, the average airdrop value per project dropped to $309.8 million, the lowest in three years.
- The decrease is attributed to the high number of new projects, which dilutes the values of individual projects.
- Unclaimed airdrops: On average, about $45 million in rewards went unclaimed in 2024.
- Smaller rewards and greater claiming effort contributed to reduced interest among users.
- As airdrop rewards decline, users have less incentive to claim, highlighting the need for more engaging strategies to maintain engagement.
- Decreasing value per project: Despite the record overall numbers, the average airdrop value per project fell to $309.8 million in 2024, due to an increase in the number of projects, which diluted the individual value.
Challenges:
- Negative feeling: 33% of the tweets analyzed showed skepticism, indicating fatigue with airdrops.
- High non-claim rates: Nearly 20% of eligible recipients did not claim their airdrops due to factors such as lack of awareness, disinterest or market saturation.
- Token download: More than half of recipients sell their tokens immediately after the TGE, creating market instability and reducing the long-term value of the airdrop.
How it works: To obtain these results, AirdropBee analyzed 1,528 crypto projects to evaluate the effectiveness of airdrops from 2018 to 2024, using data from CryptoRank, ICODrops, and internal sources.
- Using Dune Analytics, the researchers collected information on airdrop recipients and token quantities, calculating the total value of airdrops by multiplying token quantities by their all-time high prices on CoinGecko.
- They also examined metrics such as TVL, token price performance, and unclaimed rewards.
Between the lines: While airdrops generate short-term buzz, they often fail to maintain symbolic value without strong community engagement.
- However: Despite market skepticism, airdrops significantly drive TVL growth for many projects, showing potential for long-term value creation when integrated with strategic incentives.
Key quote:
“Airdrops remain a powerful tool for user acquisition, with record numbers in 2024. However, as popularity grows, so do challenges, such as changing sentiment, unclaimed airdrops and dumping. of tokens. While airdrops may generate short-term interest, projects must adopt sustainable strategies to address these issues and drive long-term value. As the cryptocurrency market evolves, so must the approach to airdrops to provide lasting value.”
Bee Airdrop
worth reading: In the Philippines, local airdrop hunter community Airdrop ng mga Bobo launched its Telegram bot to educate newcomers and celebrate the growth of the community through introductions, giveaways, and networking.
This article is published on BitPinas: Report: Are Crypto Airdrops Dead?
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