Solana (SOL) value rises as airdrops appeal to new customers to the community

Over the previous six months blockchain tasks which have issued token airdrops have re-emerged. Most notably, the airdrops by Uniswap (UNI) and MEME will likely be remembered as recipients had been rewarded with positive aspects starting from $20,000 to $600,000 merely for holding the tokens.

One Ethereum (ETH) competitor that has seen quite a few tasks launch with airdrops previously three weeks is Solana (SOL), an open-source undertaking that focuses on using blockchain expertise to supply decentralized finance options.

Whereas Solana isn’t explicitly making a concerted effort to launch these tasks, the protocol’s most important decentralized trade Serum (SRM) was answerable for the latest COPE airdrop which distributed 2,000 tokens to customers who participated within the joint DeFi hackathon held by Solana and Serum.

After the airdrop, COPE finally listed on Serum for $0.50 on March 30 and the value of the token surged to a excessive of $5.43 on April 11, rewarding holders with a $10,860 reward.

SOL/USDT 4-hour chart. Supply: TradingView

The success of the COPE airdrop prompted a collection of token launches and airdrops with similar-sounding names together with HOPE, ROPE and KOPE, whose launches on the Solana blockchain have coincided with a 55% rise within the value of SOL for the reason that begin of April.

Airdrops on the community might have performed a small function within the latest value appreciation as a result of customers needing SOL to obtain airdropped tokens however this isn’t attainable to establish based mostly on the accessible information.

Interactions on the Solana blockchain, together with the addition of latest tokens to the Sollet pockets, require small quantities of SOL to finish the contract executions. Thus, customers dashing to join airdrops earlier than they crammed up would have wanted to buy SOL and fund their wallets to be able to create new addresses for the airdropped tokens.

Analysts count on the airdrop pattern to proceed

For these apprehensive that they missed out or that the ‘airdrop season’ is over, a latest tweet from Solana’s Twitter feed means that the Solana ecosystem is simply getting began, which means the probability of future airdrops stays excessive.

New customers are the lifeblood of profitable blockchain networks, and using airdrops continues to be one of the utilized strategies for drawing consideration to fledgling tasks and sapping liquidity from one protocol to a different.

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