New research from crypto data aggregator CoinGecko shows that airdropped tokens tend to print their record highs within weeks after the airdrop date.
In a new report, CoinGecko looked at the price action of tokens that were part of the largest airdrops between January 1st, 2020 and February 20, 2024 to find out the number of days it took to achieve peak gains.
The study shows that 23 out of the 50 coins (46%) that were part of the study recorded all-time highs within two weeks after launch. The 23 coins generated returns ranging from 37% to 425%.
“This suggests that the best time to sell airdrop tokens may be within 14 days of receiving them, in order to take maximum profits.”
Of the 23 crypto assets, 16 recorded peak gains between day two to 14 after the airdrop date. The remaining seven hit record highs on the day of the airdrop but were unable to recover after.
CoinGecko says the data suggests that airdropped tokens are likely to witness peak interest shortly after the event.
“This confirms that token airdrops are an effective marketing or growth tactic, but also indicates that interest in a specific token tends to grow following an airdrop as more people talk about it, reaching its peak shortly thereafter and is reflected in the token’s price.”
Meanwhile, the 27 remaining tokens that were part of the study hit peak gains 15 to 581 days after their airdrop date. The report says favorable market conditions and project growth drove up token prices.
You can read the full report here.
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- Source: https://dailyhodl.com/2024/02/25/nearly-half-of-all-large-airdrops-reach-all-time-high-prices-within-two-weeks-coingecko-report/
