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MODE crypto 550M token airdrop: examining the effect on price, TVL
- The mode began its air launch on May 7.
- It decreased significantly after its airdrop.
Mode [MODE] went into “Airdrop mode” on May 7, distributing millions of tokens to eligible users.
Ahead of the airdrop, the network’s Total Value Locked (TVL) saw a significant increase and its trading volume also saw a spike on the day of the airdrop.
However, following the release of the token, the value of the MODE token dropped.
Encryption mode begins airdrop
On May 7, Mode began an airdrop program, distributing 550 million of its tokens to eligible users.
The distribution is determined by Mode Points held by users, earned through their engagement with various DeFi applications, NFTs and other Layer 2 networks.
This allocation of 550 million tokens represents 5.5% of the total token supply, which amounts to 10 billion tokens.
Furthermore, as outlined in the tokenomics provided by the team, investors and key contributors are expected to receive 38% of the total token supply.
The foundation’s treasury will hold 27%, while the remaining 35% of the supply will be allocated to community and developer airdrops.
TVL takes off
Analysis of the active Total Value Locked (TVL) mode DefilLama has shown a significant upward trend since February.
The project gained attention in January after receiving a grant of 2 million OP tokens, equivalent to about $5.4 million, from Optimism Foundation to help its development.
Built using the OP Stack, Mode is an integral part of the Optimism Superchain ecosystem.
Source: DefiLlama
The TVL chart has shown a steady increase since February, recording a notable spike starting May 1st. By May 5, TVL had surpassed $500 million.
However, a subsequent decline occurred, with TVL falling to approximately $477 million at the time of analysis.
Despite this decline, the project’s volume recorded its second-highest increase in history on May 7, reaching nearly $24 million on the day launch began.
While there has been a recent decline in TVL, data from L2 Beats indicated that Mode still had one of the largest TVLs among Layer 2 networks.
According to data from L2 Beats, Mode ranked tenth in terms of TVL, representing more than 1.4% of L2’s entire market capitalization.
Airdop mail
AMBCrypto analyses of Mode indicated a substantial drop following its airdrop event. Initially the price was $0.1, it dropped to around $0.055 by the end of May 7th.
At the time of writing, it was trading at around $0.048, reflecting a decline of more than 11%.