Ether.fi $210M Airdrop Sparks Market Turbulence, ETHFI Value Drops By 35%
March 18 2024 - 9:00PM
NEWSBTC
ETHFI, the governance token of the decentralized liquid staking
protocol Ether.fi, debuted for $4.13 following its distribution
through its airdrop on March 18. However, since the $210
million airdrop, the value of ETHFI has experienced a significant
decline, plummeting over 35% to its current trading price of $3.05,
according to CoinGecko data. ETHFI Airdrop Attracts 20,000
Participants Market expert Tom Wan has provided a summary of the
ETHFI airdrop. Out of the total supply of 16.8 million ETHFI
tokens, approximately 28% have been claimed by participants.
Related Reading: Standard Chartered Predicts Bitcoin At $150,000,
ETH At $8,000 By Year-End The airdrop attracted around 20,000
claimers, showcasing considerable interest in the token
distribution. Notably, the top wallets, accounting for 1.67% of the
total distribution, have the potential to receive between 10,000
and 25,000 ETHFI tokens, reflecting substantial holdings. Most
claimers, comprising approximately 67% of participants, are
expected to receive a lower allocation of ETHFI tokens, ranging
from 175 to 500. This distribution strategy aims to ensure a
broader and more equitable dispersion of the tokens among
participants. However, an interesting observation is that 76% of
claimers have transferred their ETHFI tokens to other wallets,
indicating a potential desire for liquidity or trading activities.
Furthermore, it is noteworthy that 38% of the token receivers are
new wallets, suggesting an expansion of the ETHFI user base as of
May 1, 2023. This influx of new participants showcases a growing
interest in the governance and utility offered by Ether.Fi’s
protocol. Ether.fi Witnesses Surge In Total Value Locked Ether.fi
has experienced notable growth in net deposits and Total Value
Locked (TVL), as evidenced by data provided by Token Terminal.
However, the platform has faced fluctuations in its active user
base. According to Token Terminal, net deposits on Ether.fi
have significantly increased, reaching $2.99 billion over the past
30 days alone. This marks a significant growth rate of 136.9%.
Simultaneously, the TVL on Ether.fi has mirrored the surge in net
deposits, which also amount to $2.99 billion over the same 30-day
period. This metric represents the total value of assets,
predominantly cryptocurrency, locked within the protocol.
However, while Ether.fi has witnessed robust growth in net deposits
and TVL, the platform has experienced fluctuations in its active
user base. Daily active users have shown a considerable decline of
54.3% over the past 30 days, currently standing at 506.
Similarly, weekly active users have experienced a more moderate
decline of 3.5%, currently standing at 5,780. This suggests that
while there has been a slight reduction in user engagement every
week, a significant portion of the user base remains actively
involved with the protocol. The most substantial decline in user
activity is observed in monthly active users, with a notable drop
of 68.9% over the past 30 days. The figure currently stands at
14,740 users. Related Reading: Solana Memecoin Presale Gone
Wrong: Creator Accidentally Burns $10M, Whale Makes Huge Profit
Overall, the distribution of the ETHFI token through the airdrop
has garnered significant attention and participation. At the same
time, the token’s value has experienced a decline since its initial
listing, the long-term potential and impact of ETHFI within the
Ether.Fi ecosystems are yet to be fully realized. Featured image
from Shutterstock, chart from TradingView.com
Solana (COIN:SOLUSD)
Historical Stock Chart
From Apr 2024 to May 2024
Solana (COIN:SOLUSD)
Historical Stock Chart
From May 2023 to May 2024