CoinGecko’s research on airdropped tokens shows that early sales are critical to maximizing profits, with significant gains observed in 23 of the 50 largest airdrops.
Airdropped tokens, often seen as a windfall for cryptocurrency enthusiasts, pose a strategic dilemma about when best to sell them for maximum profit. Cryptocurrency data aggregator CoinGecko recently published insightful research that could be an important milestone for airdrop recipients.
When can I cash out the airdrop?
According to CoinGecko’s analysis, nearly half of major airdrops hit peak token prices within two weeks of their distribution date. Specifically, 23 of the 50 largest airdrops saw a surge in value immediately after launch, suggesting that selling early could be key to maximizing returns.
Notable examples include: Ethereum Name Service (ENS) and X2Y2 saw impressive gains of 73% and 121%, respectively, in just two days of trading. On the other hand, airdrops such as Blur, LooksRare, and ArbDoge AI also showed significant short-term profitability.
Annual Market Situation: The Decisive Factor
CoinGecko analysis further breaks down airdrop performance across different market conditions, providing a nuanced view of the cryptocurrency landscape.
Bull market in 2021
During the 2021 bull market, 38% of airdropped tokens reached an all-time high (ATH), highlighting the impact of overall market trends on token valuations. For example, Uniswap’s ATH price return was 1,145%, a whopping 10x the highest return recorded in the first two weeks of trading.
Bear Market in 2022
Conversely, in the 2022 downturn, research shows that selling immediately after an airdrop is generally more advantageous, especially for non-NFT tokens. These changes demonstrate the volatility of the market and the need for airdrop recipients to continue to adapt to the broader economic environment.
Optimism returns in 2023 and 2024
The analysis points to a resurgence in bullish sentiment in the coming year, with the US approval of spot Bitcoin ETFs contributing to this optimism. Tokens like Arbitrum (ARB) and Bonk (BONK) have shown that holding airdrops for long periods of time can yield significant profits.
Airdrop revenue dynamics
CoinGecko research reveals mixed results for airdrop returns based on four years of data. Some tokens peak immediately, while others accumulate value over time, often adjusting to a project’s development milestones and market conditions.
Airdrop Profit at Highest Price: A Closer Look
Here are some notable airdrop tokens and their highest price returns:
- Bonk: 28,092% after 51 weeks
- Rate: 68% after 43 weeks
- Uniswap (UNI): 1,145% after 33 weeks
- Optimism (OP): 186% after 1.6 years
methodological rigor
CoinGecko’s methodology included collecting price data from January 1, 2020 to February 20, 2024 to ensure a comprehensive understanding of airdrop performance.
Strategic Implications for Investors
Strategic selling is very important for those holding airdropped tokens. While quick profits are tempting, the data suggests that market conditions, project growth, sentiment and patience may be more favorable over the long term.
final thoughts
Insights from CoinGecko’s meticulous research provide invaluable guidance in navigating the complex timing of airdrop token sales. Adaptive learning and strategic planning remain important for investors aiming to maximize returns in the evolving cryptocurrency market.
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