88% of NFT Airdrops Lose Value Shortly After Launch – DappRadar

Certainly, airdrops play a vital function within the non-fungible token ecosystem by fostering a group, driving engagement, rising challenge visibility, and offering worth to early adopters. However there’s a catch. The latest crypto market analysis reveals that over 88% of airdropped crypto tokens and non-fungible token cash lose worth inside simply three months after the token technology occasion. On this article, we will assess whether or not airdrop is a shortcut to NFT adoption, or simply an costly hype machine.

Most NFT Airdrops Lose Worth Shortly After TGE

On September 18, DappRadar.com, an on-chain crypto market information aggregator and non-fungible token explorer that tracks non-fungible token collections from greater than 10 blockchain networks, revealed an unique analysis report regarding crypto and non-fungible token projects-backed airdrops. Of their analysis, the DappRadar analysis staff has discovered that +88% of airdropped non-fungible token-backed cash have misplaced their worth shortly after going dwell on the blockchain.

Airdrops stay one in every of Web3’s strongest however dangerous development instruments. They spark consideration, however solely robust ecosystems can flip that into lasting communities.

We break all of it down in our newest report 👇https://t.co/GxolTfLPzH

— DappRadar (@DappRadar) September 18, 2025

By description, an airdrop is a advertising and marketing technique the place a non-fungible token challenge distributes free new tokens or cash to lively customers, typically as a reward for early engagement, holding particular tokens, or finishing easy duties. Though airdrops can provide free crypto, NFT customers must be cautious of scammers and hackers and analysis the legitimacy of any airdrop or alternative earlier than collaborating.

Many NFT tasks use airdrops to construct group and create buzz, rewarding early adopters and present non-fungible token holders with free digital belongings to foster long-term engagement and decentralization. By distributing tokens broadly, non-fungible token tasks additionally improve the attention of their merchandise, drive adoption of their platform, and may even present holders with voting rights, contributing to the community impact essential for a crypto challenge’s success in a aggressive market.

Airdrops come in numerous codecs, together with retroactive airdrops, which reward customers who’ve interacted with a protocol prior to now; incentive airdrops, which encourage ongoing conduct reminiscent of buying and selling, staking, or referrals (e.g., Blur’s factors system), and group airdrops, which reward non-fungible token holders, builders, or social group members. Airdrops have turn into one of the crucial efficient advertising and marketing methods in Web3.

Blur NFT Coin Fell +50% Shortly After Launch

The DappRadar NFT staff has highlighted $Blur as one of many non-fungible token cash that lowered its worth barely three months after launch. The BLUR token is the native cryptocurrency of the Blur platform, a high-performance NFT market and market information aggregator designed for skilled merchants. BLUR tokens serve two major features: governance, permitting holders to vote on platform selections, and incentives, rewarding customers for buying and selling exercise, itemizing NFTs, and offering liquidity.

Take Blur for instance. Its airdrop in 2023 flipped the NFT market in a single day, capturing 70%+ of Ethereum NFT buying and selling quantity and outpacing OpenSea by as much as 5x in every day buying and selling.

However here is the catch: a lot of that surge got here from a couple of high-frequency farmers, not long-term customers. pic.twitter.com/UCBVQrwylf

— DappRadar (@DappRadar) September 18, 2025

Blur launched its Blur NFT coin in February 2023. Blur’s token launch was preceded by months of “seasonal” rewards, the place merchants collected factors for exercise reminiscent of itemizing NFTs, offering liquidity, and demonstrating platform loyalty. In only a few days, Blur NFT had captured greater than 70% of Ethereum’s NFT buying and selling quantity, forcing its rival OpenSea NFT market to slash its charges and rethink creator royalties.

Sadly, the Blur token, which initially debuted at round $1.20, rapidly declined days later after claimants bought their holdings. This token has additionally drifted under $0.10 by 2025. By late 2023, Blur’s NFT market share had begun to say no as nicely, stabilizing within the 20–40% vary after the preliminary surge. On the time, OpenSea dominated the NFT market by way of distinctive lively wallets, interesting extra to informal collectors and creators.

Different NFT airdrops that adopted an analogous observe had been LooksRare and X2Y2. These NFT market platforms distributed tokens to OpenSea NFT merchants in 2022. Each briefly captured vital quantity, however a lot of it was wash buying and selling. It didn’t take lengthy earlier than exercise fell sharply as a result of rewards dried up. Their tokens, as soon as value a whole lot of tens of millions, now commerce at a fraction of their peak values. Extra not too long ago, memecoin-style NFT airdrops, Memecoin ($MEME), which briefly energized collectors, have additionally didn’t maintain NFT market hype.

Lesson Learnt

The important thing lesson from NFT airdrops is that regardless that they’re extremely efficient at redirecting liquidity, they wrestle to create sustainable communities. Merchants will observe rewards, however collectors and creators search belief, usability, and cultural relevance, elements that tokens alone can not ship. The problem for NFT tasks is not the way to seize consideration, however to know which tasks create hype and which of them create historical past.

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