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Highlights
- ZK price falls 5% following the $113 million zkSync token airdrop, highlighting market volatility.
- Nansen data shows significant sell-offs, with 39.9% of recipients selling all their ZK tokens.
- Issues related to Sybil attacks and large-scale liquidations further exacerbate market instability.
The price of ZK has plummeted by 5% amid a significant sell-off following the $113 million zkSync token airdrop. Since the day of the listing, numerous sell-offs have occurred, heavily impacting the token’s value and leading to a series of price dips. This development highlights the volatile nature of the cryptocurrency market and raises concerns about the immediate future of ZK.
Massive Sell-Off Statistics and Market Data
The launch of ZKsync’s airdrop program has seen a flurry of activity among recipients, according to data from blockchain analytics firm Nansen. Since applications opened for the ZK token airdrop, a significant portion of the top 10,000 recipients have opted to sell their newly acquired tokens.
A detailed analysis reveals diverse responses to the airdrop. Approximately 25.6% of the top recipients have chosen to hold onto their entire airdropped allocation, neither selling nor moving their ZK tokens. Meanwhile, 34.5% have taken a more measured approach, selling or transferring a portion of their airdropped tokens while retaining the rest. However, nearly 40% of the top recipients, 39.9% to be precise, have chosen to cash out completely, selling or moving all of their airdropped ZK tokens.
The substantial selling pressure from the airdrop has not gone unnoticed in the market. At the time of writing, the ZKsync token (ZK) price is trading at $0.2148, with a 24-hour trading volume of an impressive $626.9 million. Despite this high liquidity, the token’s price has experienced a 5.01% decline over the past 24 hours.
With a circulating supply of 3.7 billion ZK tokens, the project currently boasts a market capitalization of $799.6 million. These figures underscore the significant market activity and substantial impact that the ZK airdrop has had on the token’s trading dynamics, highlighting the influence of such events on the broader cryptocurrency landscape.
Also Read: VanEck Bitcoin ETF Debuts on Australian Stock Exchange ASX, Will It Get US-Like Response?
Market Reactions and Challenges
The ZKsync token airdrop led to a significant price drop due to large-scale selling. Data that was released few hours after the token went main stream shows that around 40% of recipients sold their entire allocation, while another 34.5% sold a portion. Less than 26% held onto their tokens after the airdrop, further devaluing the token.
The situation was exacerbated by potential Sybil attacks, where individuals created multiple fake identities to receive more tokens. Although some projects have strict measures against this, ZKsync’s approach was less restrictive, which may have contributed to the token flood.
Despite the market turbulence, ZKsync plans to distribute 3.67 billion tokens to over 695,232 addresses, with the top 10,000 wallets receiving only 1.44% of the total allocation. This broad distribution aims to increase the token’s reach, but it also poses challenges in maintaining price stability with high trading volumes.
Also Read: XRP Price Forecast: Whales Shift 52M Coins Amid Price Recovery
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