- Mode, a prominent player in the crypto sphere, initiated its airdrop on the 7th of May, distributing its native token to eligible users.
- Despite a surge in Total Value Locked (TVL) and trading volume leading up to the airdrop, the value of the Mode token has seen a significant decline post-airdrop.
- The airdrop followed Mode’s receipt of an Optimism grant, further solidifying its position in the crypto market.
Explore the impact of Mode’s recent token airdrop on its value and the broader crypto market. Understand the factors that led to the airdrop and the subsequent decline in token value.
Mode Commences Airdrop, Distributes Millions of Tokens
On the 7th of May, Mode initiated its airdrop program, distributing 550 million of its tokens to eligible users. The distribution was determined by the 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 accounts for 5.5% of the total token supply, which amounts to 10 billion tokens.
Surge in Total Value Locked (TVL) Pre-Airdrop
Leading up to the airdrop, the Total Value Locked (TVL) of the network experienced a significant surge, and its trading volume also witnessed a spike on the day of the airdrop. Analysis of the Mode Total Value Locked (TVL) on DefiLlama revealed a significant uptrend starting from February. The project garnered attention in January after receiving a grant of 2 million OP tokens, equivalent to around $5.4 million, from the Optimism Foundation to aid its development. Built using the OP Stack, Mode is an integral part of the Optimism Superchain ecosystem.
Decline in Token Value Post-Airdrop
However, following the token release, the value of the MODE token experienced a decline. Initially priced at $0.1, it declined to around $0.055 by the end of the 7th of May. At press time, it was trading at around $0.048, reflecting an over 11% decline.
Conclusion
While the airdrop led to a temporary surge in Mode’s TVL and trading volume, it also resulted in a significant decline in the value of its token. This development underscores the volatility of the crypto market and the potential risks associated with token airdrops. As the crypto market continues to evolve, it will be interesting to see how Mode and other crypto entities navigate these challenges.
