Crypto airdrops have maintained their momentum into 2024, distributing approximately $4 billion in value so far, with several significant airdrops still on the horizon.
The most substantial airdrops this year were Jupiter, Starknet, and Notcoin, each distributing around $1 billion in value. These estimations are based on the number of tokens given out and their average prices over subsequent months. Following these were a variety of Solana and Ethereum-based projects, including Wormhole, Ether.fi, FriendTech, and Wen.
Crypto airdrops involve projects distributing tokens to previous protocol users, often when the project transitions control to its community by issuing a governance token. These tokens allow users to participate in decision-making processes. Airdrops can be distributed in multiple phases and typically aim to exclude wallets that interact with protocols solely for airdrop eligibility.
Historically, the most significant airdrops have been Uniswap, Apecoin, and dYdX. According to a CoinGecko report, the total value of all airdrops until December 2023 was $26.6 billion, based on peak token prices. Including 2024 airdrops, valued at their peaks, the total upper bound value of all airdrops so far could reach $34 billion.
Upcoming Airdrops in 2024
Several highly anticipated airdrops are set to take place this year. The Ethereum Layer 2 network ZKsync’s airdrop is scheduled for next week. Solana-based decentralized exchange Zeta Markets will launch its airdrop in June. The Ethereum restaking protocol EigenLayer has started its airdrop, though the token won’t be transferable until later this year. Additionally, cross-chain messaging protocol LayerZero is preparing for its airdrop, although no date has been announced yet.
Challenges of Airdrop Farming
While airdrops continue to distribute significant sums of money, they face increasing challenges from airdrop farmers—individuals who use numerous wallets to interact with projects in anticipation of future token distributions. Projects are actively working to identify and exclude these wallets from airdrop distributions.
LayerZero, for example, has taken a proactive stance against airdrop farming, offering bounties for reports of potential airdrop farmers. The project is currently reviewing all reports to address these claims. Similarly, ZKsync’s upcoming airdrop has seen the exclusion of several airdrop farmer wallets. This process removed some wallets that met usage criteria but did not qualify for the minimum token distribution. Additionally, it capped the largest expected distributions and redistributed some tokens among all recipients.
As a result, while airdrops remain lucrative, qualifying for them has become increasingly difficult, and even genuine users may be excluded.
Closing Thoughts
Crypto airdrops continue to be a significant aspect of the cryptocurrency ecosystem, offering substantial value to participants. However, as projects enhance their measures to prevent exploitation, the process of qualifying for airdrops has become more stringent. As the year progresses, participants and observers alike will be keenly watching the upcoming airdrops and the measures taken to ensure fair distribution.
Stay informed and vigilant to make the most of these opportunities while navigating the evolving landscape of crypto airdrops.
