A new study from crypto market maker Keyrock has debunked the notion that airdrops inevitably lead to price dumps. While 88% of tokens launched with airdrops this year have seen price declines, the study found that strategic planning can mitigate this risk.
“Contrary to popular belief, larger airdrops don’t always lead to dumps,” said Keyrock in its report. “A token with 70% airdrop allocation saw positive gains, highlighting that FDV management is more important.”
The study identified fully diluted valuation (FDV) and liquidity as crucial factors in determining an airdrop’s success. Projects with inflated FDVs often struggle to sustain momentum due to limited perceived upside and insufficient liquidity.
“Without sufficient liquidity, prices become highly sensitive to sell pressure,” explained Keyrock.
Keyrock’s analysis highlighted the Solana ecosystem as a leader in successful airdrops. Solana-based tokens like DRIFT, WEN, and JUP demonstrated strong performance. In contrast, ZkLend, an Ethereum layer 2 Starknet project, experienced a 95% decline from its launch price due to high FDV and a lack of brand traction.
