- Starknet airdropped nearly 600 million STRK tokens to over 1 million crypto users, causing significant price and volume fluctuations
- STRK price spiked before the airdrop then dropped 49% after launch as recipients likely sold their free tokens
- STRK trading volume hit $122 million before the airdrop but declined sharply after launch, rebounding to $89 million later
The Ethereum layer-2 scaling solution Starknet recently launched the airdrop for its governance token STRK. The token has been made available to over 1 million crypto users and listed on major exchanges. However, the price and trading volume have seen significant fluctuations in response.
The Airdrop Mechanics
Starknet allocated nearly 600 million STRK tokens for distribution via the airdrop. The Starknet Foundation is referring to the event as a “provisions program” for the network’s users, developers, and the Ethereum community. Around 51000 users have claimed their tokens so far, representing 48% of those eligible.
Post-Airdrop Price Action
At launch, STRK was trading around $2.56 according to CoinGecko. However, the price soon dropped 49% from that level. STRK now has a market capitalization of approximately $2 billion, making it a top 50 cryptocurrency. The sell pressure is likely due to airdrop recipients claiming and selling their free tokens.
Trading Volume Spikes and Declines
In the lead up to the airdrop, STRK trading volume spiked to $122 million in a single day. But volume declined sharply after the airdrop launched. It has since rebounded to around $89 million at the time of writing as per CoinGecko data.
Conclusion
The STRK airdrop has significantly impacted the token’s price and trading volume since launch. After spiking on airdrop anticipation, volume and price have been volatile as new holders claim and potentially sell their tokens. It remains to be seen whether STRK can establish itself in the top 100 long term.
