Nearly 50 of ZKsync Airdrop Recipients Have Sold Off All Their Tokens Nansen

Nearly Half of ZKsync Airdrop Beneficiaries Sold Off Their Tokens, Nansen Reports


By Andrew Throuvalas
Published: June 18, 2024, 14:39 EDT
| 1 min read


Data from blockchain analytics provider Nansen reveals that a significant portion of the top 10,000 Ethereum addresses to receive ZK tokens quickly offloaded their new coins following the highly anticipated airdrop.
Nansen’s analysis shows that approximately 41% of these top addresses sold their entire ZK token holdings within 24 hours of the Monday drop. These sellers are categorized as “jeets” by Nansen, indicating they are investors who quickly sell their investments at the first sign of trouble or for any reason.
ZKsync Airdrop Jeets
Another 30.1% of recipients chose to sell a portion of their tokens, while only 28.8% held onto the full airdrop or added to their positions. It’s worth noting that these top addresses represent just 1.44% of all eligible wallets for the airdrop, so the behavior of recipients with smaller positions may have differed.
In total, addresses that sold off their ZK tokens entirely were responsible for $346.7 million in sell pressure, while partial sellers accounted for $149.2 million in sales.
At present, ZK’s market cap stands at $751 million, with the token’s price having dropped by 16.6% in the past 24 hours, reaching an estimated $1 billion in trading volume.
It’s not uncommon for a newly airdropped token to experience sell-offs. For instance, Starknet, a competing Ethereum layer 2 network, saw its token plummet by 49% in value within a day of its February airdrop. The recent sell-off also occurred amidst a broader pullback in the crypto market, with Bitcoin and Ethereum experiencing declines of 2.9% and 2.78%, respectively, over the past 24 hours.
The largest single recipient of the ZKsync airdrop received over 8.3 million ZK tokens, valued at $1.7 million at the time of writing. A significant number of smaller recipients claimed approximately 53,000 tokens, which are now valued at around $10,600. In total, the airdrop distributed 3.675 billion ZK tokens to early ZKsync users and adopters.
What Is ZKsync?
ZKsync is a layer 2 blockchain that utilizes zero-knowledge rollups to facilitate faster and more affordable Ethereum transactions, while still benefiting from Ethereum’s economic security. ZK token holders can participate in the network’s governance, delegate their tokens, and actively engage in the community.
While a large portion of the early tokens were distributed to network users, others were allocated to “contributors” such as developers, researchers, communities, and companies.
The fully diluted market cap of ZKsync stands at 21 billion units, with only 17% of the tokens having entered the market so far.
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