ZK Token Launch: Market Cap Drops to $600 Million Amid Initial Hype and Selling Pressure

• zkSync recently launched its much-anticipated token, ZK, with an initial market valuation of $1 billion on June 17.
• Despite an initial surge, ZK’s market value decreased due to persistent selling pressure from airdrop recipients and generally weak market conditions.
• As of now, ZK’s market capitalization hovers around $600 million, marking a 40% drop from its fully diluted valuation of $3.4 billion during the launch.

zkSync’s token launch shook the crypto sphere with its robust entry, but sustained market pressures have tempered its initial gains.

Surge in Network Activities Despite Weak Token Performance

In the week leading up to the ZK token launch, zkSync Era witnessed relatively muted activity, with daily new addresses averaging around 7,000. However, this number more than doubled to 18,000 on the day of the launch.

Post-Launch Activity and Token Popularity

The enthusiasm was short-lived as the next day saw a dramatic increase to 31,800 new addresses, further climbing to 35,800 on June 19. Concurrently, transaction volume peaked, with over 1.8 million transactions recorded as users rushed to claim their airdrops, marking the highest level in three months.

Conclusion

Despite the initial flurry of activities and unprecedented levels of engagement, zkSync’s token ZK faced significant declines post-launch. This sharp drop in activity underscores the volatility of the crypto market, especially for new token launches. Investors should remain cautious and carry out diligent research before making any decisions in this ever-changing landscape.