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The native Layer 2 network mode token drops over 60% immediately after the airdrop
MODE is the latest token to see its price drop soon after its airdrop.
MODE follows native tokens Kamino, Renzo, Parcl, Wormhole, and Friend.Tech in the fall after their token genesis events.
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Published May 7, 2024 at 4:12 pm EST.
The native token for Mode, a new layer 2 blockchain network that is part of Optimism’s Superchain ecosystem, dropped in price immediately after its airdrop statements were published, a potential sign that airdrops are losing their luster.
MODE, which will be used to govern the protocol, began trading above 14 cents around 7 a.m. ET, but over the past seven hours the cryptocurrency has fallen more than 63% to 5 cents as of press time, according to data of CoinGecko.
MODE’s market capitalization stands at approximately $71 million, while its fully diluted valuation (FDV), which is the theoretical market capitalization of the token if the entire supply were in circulation, stands at $547 million , lower than that of rival layer 2 blockchain networks such as Base, Manta, Arbitrum, Mantello and Starknet.
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MODE’s price action following the token’s genesis event is not the first time a new cryptocurrency has seen its price drop shortly after its airdrop request was published. The native tokens for Chimney, Renzo, Parcl, WormholeAND Amico.Tech – all of which recently conducted their token genesis events – not only dropped in price within 24 hours of the airdrop date, but also remained lower than the first day they began trading, according to CoinGecko.
A crypto user, who goes by @TobiWebIII on X, noticed how MODE is trading at less than 7 cents and he wrote, “Are we witnessing the inevitable end of airdrops?” Another user, with the screen name @OlimpioCrypto on X, noticed that Mode’s FDV was low, commenting how “we’re starting to see that there’s no infinite money for infinite ratings for infinite L2s.”
To know more: Who knew that throwing a tantrum would be such an effective strategy for receiving a larger airdrop allocation?
Early adopters Mode have locked a total value of $488.36 million within the Layer 2 network, making it TVL’s 15th largest blockchain. However, of the 11 protocols that each have a TVL above $2 million on Mode, all but one have seen their TVL decline in the past 24 hours, according to data from DefiLlama. Shows.
In January 2024, the Optimism Foundation awarded Mode a grant of two million OP tokens, worth approximately $5.4 million, to incentivize user growth on Mode’s network.
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