ZkSync Token Launch Doesn’t Bring Excitement as Expected as Price Continues to Drop

Key Ingredients:

• The designate of the ZK has plummeted over 13% in per week because of the heavy sell-offs following the ZkSync token starting up.
• A chief selection of airdrop recipients bought their tokens fleet, with 41% promoting within hours.
• The topic worsened because of the a efficiency glitch within the zkSync network.

The token skilled a gargantuan selection of sell-offs starting from the day of its record, inflicting immense dips in its worth.

At first, ZK seen a brief surge in market capitalization within the main few hours post-starting up. On the opposite hand, this upward construction used to be brief-lived as sell stress mounted, in particular from airdrop recipients. The decline in worth used to be exacerbated by broader adverse market conditions.

The zkSync airdrop program generated a frenzy of process amongst recipients. Knowledge from blockchain analytics firm Nansen revealed that a dapper selection of the quit 10,000 recipients fleet bought their newly acquired tokens. Fully 30% of all addresses retained their total allocations. Conversely, 41% of recipients bought their tokens within a few hours of receipt, highlighting a prevalent construction of cashing out immediately.

The zkSync token starting up used to be anticipated to be considered one of many biggest airdrops of 2024, expected to steal pleasure in bullish events love the Bitcoin halving and approvals of problem Bitcoin and Ethereum ETFs. No topic these sure forecasts, investor behavior diverged, with many opting to sell their holdings quickly after purchasing and selling commenced.

Network Glitch Exacerbates ZK Token Promote-Off

At current, ZK’s market capitalization stands at $625 million, with an absolutely diluted valuation of $3.67 billion, with a 36% decline from its starting up valuation.

The topic used to be additional aggravated by a efficiency glitch within the zkSync network, which struggled below the heavy load of the airdrop and subsequent promoting process. The zkSync team acknowledged a degradation in network efficiency on X, which seemingly accelerated the sell-off as recipients hurried to offload their tokens.