NEWSLETTER
023 has become a major year for cryptocurrency airdrops. A recent analysis crypto-airdrops?utm_campaign=Data%2BVisualization&utm_medium=social” target=”_blank” rel=”nofollow”>revealed that of the top 50 cryptocurrency airdrops since 2020, 13 occurred in 2023, collectively distributing approximately $4.56 billion in tokens.
These figures are calculated based on the tokens' values at their respective all-time highs (ATHs), which paints a substantial distribution picture.
The 2023 airdrop field was less crowded than 2021, which had 18 entries in the top 50, but the impact was notable. A CoinGecko report highlights this change in trend, comparing it to just 5 airdrops in 2020 and 14 in 2022.
Arbitrum leads 2023 airdrop charge
Arbitrum, an ethereum layer 2 scaling solution, topped the 2023 airdrop list by distributing ARB tokens valued at $1.96 billion on March 23. This move significantly affected its total value locked (TVL), which increased by 147% during the lead-up period.
This airdrop alone constituted a substantial portion of the total value distributed in the year. Celestia, with its TIA tokens, followed suit, distributing $728 million on October 31.
The airdrop targeted a diverse group, including developers, ethereum rollup users, and Cosmos Hub and Osmosis stakeholders.
Blur's first airdrop, which dished out $446 million on BLUR on February 14, took third place. The success of this initial airdrop set the stage for a second, which distributed an additional $327 million, ranking fourth.
A Closer Look at 2023 crypto Airdrop Trends
While the first air launch of Arbitrum, Celestia and Blur accounted for 69.9% of the total air launch value in 2023, the year saw diverse contributions across the sector. Jito, Worldcoin, Aidoge and other projects followed, each contributing to the cumulative value and diversity of airdrops.
The total value distributed in 2023 may have decreased compared to 2022, but it is essential to consider the market cycles these newer tokens have experienced.
Unlike previous tokens that saw the 2021 bull market and the 2022 non-fungible token (nft) market surge, many of the tokens airdropped in 2023 have yet to experience a full bull market cycle.
In terms of performance, Arbitrum and Worldcoin have shown significant gains, with ARB rising 22% in the last week to trade at $1.33, at the time of writing and WLD up over 60% in the last two weeks to trade at $3.86, at the time of writing.
Celestia and Blur follow closely in terms of price appreciation, with both tokens up 10.7% and 5.7% respectively in the last 7 days.
On the contrary, Jito, despite being the newest among them, has seen a drop in its value of 9.4% in the last two weeks, but shows signs of recovery last week, with an increase of 9%, illustrating the dynamic and often unpredictable nature of token valuations following the airdrop.
Featured image from iStock, chart from TradingView
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