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Solana (SOL) price rises as airdrops attract new users to the network

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Over the previous six months blockchain initiatives which have issued token airdrops have re-emerged. Most notably, the airdrops by Uniswap (UNI) and MEME will likely be remembered as recipients have been rewarded with features starting from $20,000 to $600,000 merely for holding the tokens.

One Ethereum (ETH) competitor that has seen quite a few initiatives launch with airdrops in the previous three weeks is Solana (SOL), an open-source venture that focuses on using blockchain expertise to present decentralized finance options.

Whereas Solana isn’t explicitly making a concerted effort to launch these initiatives, the protocol’s most important decentralized trade Serum (SRM) was liable for the current COPE airdrop which distributed 2,000 tokens to users who participated in the joint DeFi hackathon held by Solana and Serum.

After the airdrop, COPE ultimately listed on Serum for $0.50 on March 30 and the price of the token surged to a excessive of $5.43 on April 11, rewarding holders with a $10,860 reward.

SOL/USDT 4-hour chart. Supply: TradingView

The success of the COPE airdrop prompted a sequence of token launches and airdrops with similar-sounding names together with HOPE, ROPE and KOPE, whose launches on the Solana blockchain have coincided with a 55% rise in the price of SOL since the begin of April.

Airdrops on the network might have performed a small position in the current price appreciation due to users needing SOL to obtain airdropped tokens however this isn’t doable to confirm based mostly on the accessible information.

Interactions on the Solana blockchain, together with the addition of new tokens to the Sollet pockets, require small quantities of SOL to full the contract executions. Thus, users dashing to join airdrops earlier than they stuffed up would have wanted to buy SOL and fund their wallets so as to create new addresses for the airdropped tokens.

Analysts count on the airdrop development to proceed

For these nervous that they missed out or that the ‘airdrop season’ is over, a current tweet from Solana’s Twitter feed means that the Solana ecosystem is simply getting began, that means the probability of future airdrops stays excessive.

☀️New Initiatives constructing on Solana@HedgehogMarket prediction markets platform@solstarterorg IDO platform@HxroNetwork derivatives protocol@cyrii_MM $COPE@StepFinance_ Place monitoring@Media_FDN P2P CDN @PsyOptions choices protocol@synthetify for artificial belongings$SOL $SRM pic.twitter.com/K1DN51R4DO

— S◎L mates ☀️ (@Solana_Mates) April 7, 2021

New users are the lifeblood of profitable blockchain networks, and the use of airdrops continues to be one in every of the most utilized strategies for drawing consideration to fledgling initiatives and sapping liquidity from one protocol to one other.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you must conduct your individual analysis when making a choice.

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