Introduction
Airdrops have been a cornerstone strategy in the crypto ecosystem in recent years, serving as a powerful tool to attract users, boost engagement, and create thriving communities. However, as the landscape shifts, airdrop effectiveness and long-term viability are facing renewed scrutiny.
In this article, we examined 1528 projects to determine whether airdrop is still a sustainable strategy for crypto growth in 2024 and beyond.
Key Findings
- Nearly two-thirds of projects experienced increases in Total Value Locked (TVL) following token airdrops.
- 64% of airdrop farmers sold their tokens immediately at the Token Generation Event (TGE).
- Over 66% of projects saw token price drops post-airdrop.
- $45 billion worth of airdrops remain unclaimed.
- 2024 witnessed the highest number of airdrop participants, reaching nearly 200 million.
Airdrop Has Become an Essential Part of Crypto
Methodology: We first collected a list of 1528 airdropped projects for the period 2018-2024, using CryptoRank, ICODrops, and our internal database.
From the project list, we then use Dune Analytics to gather the number of airdrop recipients and the number of airdropped tokens. We calculate the airdrop value by multiplying the number of airdropped tokens by their all-time high (ATH) price on CoinGecko.
In 2024, 88% of all launched crypto projects utilized airdrops to engage and reward their user base (source). This figure demonstrates their integral role in the crypto industry, emphasizing the mutual recognition that effective user engagement often begins with reward distribution.
Airdrop Annual Metrics: Exponential Growth
The steady rise in airdrop value over the years underscores their growing influence. From just a total of $189.7 million in 2018, the yearly airdrop value increased to $12.64 billion amid the 2021 bull run before peaking in 2024.
In 2024, the overall airdrop value once again entered the eleven-figure range at $20.60 billion, indicating a blooming market interest and renewed momentum.
Along with value, participation in airdrops has also risen dramatically. In 2024, approximately 199 million users participated in airdrops, showcasing a surge in popularity and broader reach within the market.
Compared to 135.8 million in 2022 and 124.8 million in 2023, this growth illustrates not just growing interest but a shift toward mass user adoption in the crypto space.
Yet, Airdrop Value is Declining
Methodology: We performed a further and in-depth analysis of the project list to find the average unclaimed tokens using Dune Analytics. We calculate the average airdrop value per project of each year by dividing the total airdrop value of the year by the total airdropped projects of that year.
Despite record-breaking total value and participation, the average amount per airdrop has declined over recent years. 2024’s average airdrop value per project stood at just $309.8 million, marking the lowest point in three consecutive years.
This decline reflects the surge in the number of projects launched in 2024, diluting overall value and driving down the average value per project.
This decrease in airdrop value also led to users losing interest in claiming rewards, resulting in approximately $45 million worth of airdrops going unclaimed on average.
This unclaimed value indicates a shift in user behavior, as smaller rewards from various projects no longer justify the effort and costs involved in claiming them.
Challenges Facing Crypto Airdrops
Methodology: We scraped over 11,000 tweets that mentioned the airdropped projects and performed sentiment analysis to determine the overall sentiment toward airdrops. Additionally, we used Dune to calculate the percentage of airdrop recipients dumping airdropped tokens. If a claimer has sold the token on DEX or transferred it on CEX during TGE, we classify them as dumpers. We also used Dune to calculate the unclaim rates of airdrops.
As airdrops continue to gain traction and become more widespread, their challenges become more pronounced.
- High Unclaim Rates: Nearly 1 in 5 eligible recipients did not claim their airdrops. This could stem from a lack of awareness, disinterest, or an over-saturation of airdrop campaigns in the market.
- Negative Sentiment: A notable 33% of collected tweets about airdrops reveal a negative sentiment. This skepticism suggests a growing fatigue or dissatisfaction with the current state of airdrop implementations.
- Token Dumping: Approximately 64% of airdrop farmers immediately sell their tokens after claiming them during Token Generation Events (TGE). This behavior leads to market instability and significantly undermines the intended value creation of these distributions, rendering it one of the most critical obstacles faced by airdrop campaigns.
Crypto Airdrop: Building Long-term Value or Just Short-term Interest?
Methodology: For price changes post TGE, we collected price data from CoinMarketCap and CoinGecko, covering a 6-month period. We also gathered Total Value Locked (TVL) data from DefiLlama to evaluate how projects performed after airdrop, also over a 6-month period.
A clear distinction between short-term interest and long-term gains is becoming evident. Data reveals a dual reality: airdrops, while may cause price decline post-TGE, often contribute greatly to sustained TVL growth over time.
Post-Airdrop Price Decline: An Ongoing Issue
Examined data saw two-thirds of projects experience significant price declines post-airdrop, with losses ranging from 23% within the first week to 82% over six months.
This rapid depreciation reflects a harsh truth about airdrops: while generating temporary hype, airdrops without fostering genuine community engagement often lead to a decrease in token performance.
Conclusion
Airdrops remain a powerful tool for user acquisition, with record-breaking numbers in 2024. However, as popularity grows, so do the challenges, such as shifting sentiment, unclaimed airdrops, and token dumping. While airdrops can generate short-term interest, projects must adopt sustainable strategies to address these issues and drive long-term value.
As the crypto market evolves, so too must the approach to airdrops in order to provide lasting value.