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This month, the price of Solana has increased by more than 50% as new ventures perform airdrops on the SOL network and strong Ethereum fees drive investors to pursue cheaper alternatives.
Blockchain ventures that have offered token airdrops have resurfaced in the last six months. The airdrops by Uniswap (UNI) and MEME, in particular, would be recalled that receivers were credited with gains ranging from $20,000 to $600,000 merely for keeping the tokens.
Solana (SOL), an open-source initiative that focuses on using blockchain technologies to provide decentralised finance solutions, is one Ethereum (ETH) rival that has seen multiple projects debut with airdrops in the last three weeks.
Although Solana isn’t making a concerted attempt to initiate these ventures, the protocol’s primary decentralised exchange Serum (SRM) was responsible for the latest COPE airdrop, which circulated 2,000 tokens to users who engaged in Solana and Serum’s joint DeFi hackathon.
Following the airdrop, COPE was classified on Serum for $0.50 on March 30, and the token’s price soared to a high of $5.43 on April 11, providing investors with a $10,860 payout.
The success of the COPE airdrop spurred a flurry of token launches and airdrops with similar-sounding names, such as HOPE, ROPE, and KOPE, whose launches on the Solana blockchain have coincided with a 55 percent increase in the price of SOL since the beginning of April.
Airdrops on the network may have played a minor role in the latest price increase due to consumers requiring SOL to collect airdropped tokens, although this cannot be determined based on the data available.
Small quantities of SOL are needed to complete contract executions on the Solana blockchain, including the adding of new tokens to the Sollet wallet. Users who rushed to sign up for airdrops before they ran out of space may have had to buy SOL to fund their wallets in order to generate new addresses for the airdropped tokens.
Analysts expect the airdrop trend to continue
For those concerned that they missed out or that the ‘airdrop season’ has ended, a new tweet from Solana’s Twitter account shows that the Solana ecosystem is just getting started, implying that potential airdrops are still a possibility.
☀️New Projects building on Solana@HedgehogMarket prediction markets platform@solstarterorg IDO platform@HxroNetwork derivatives protocol@cyrii_MM $COPE@StepFinance_ Position tracking@Media_FDN P2P CDN @PsyOptions options protocol@synthetify for synthetic assets$SOL $SRM pic.twitter.com/K1DN51R4DO
— S◎L mates ☀️ (@Solana_Mates) April 7, 2021
New users are the lifeblood of active blockchain networks, and airdrops are one of the most popular methods for attracting attention to new ideas and transferring liquidity from one protocol to another.