Solana (SOL) price rises as airdrops attract new users to the network

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

One Ethereum (ETH) competitor that has seen quite a few initiatives launch with airdrops up to now three weeks is Solana (SOL), an open-source undertaking that focuses on using blockchain know-how to offer decentralized finance options.

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Whereas Solana isn’t explicitly making a concerted effort to launch these initiatives, the protocol’s most important decentralized change Serum (SRM) was chargeable 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 sequence 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 worth of SOL for the reason that begin of April.

Airdrops on the community could have performed a small position within the latest worth appreciation as a result of customers needing SOL to obtain airdropped tokens however this isn’t doable to establish primarily based on the obtainable knowledge.

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 speeding to join airdrops earlier than they stuffed up would have wanted to buy SOL and fund their wallets so as to create new addresses for the airdropped tokens.

Analysts count on the airdrop pattern to proceed

For these nervous 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 chance of future airdrops stays excessive.

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

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