New research from crypto data aggregator CoinGecko shows that airdropped tokens tend to print their all-time highs within weeks of the airdrop date.
In a new report, CoinGecko looked at the price action of tokens that were part of the largest airdrops between January 1, 2020 and February 20, 2024 to find out how many days it took to achieve peak gains.
The study shows that 23 of the 50 coins (46%) included in the study recorded all-time highs within two weeks of launch. The 23 coins generated returns ranging from 37% to 425%.
“This suggests that the best time to sell airdrop tokens may be within 14 days of receiving them to maximize profits.”
Of the 23 crypto assets, 16 recorded peak gains between days two and fourteen after the airdrop date. The remaining seven reached record highs on the day of the airdrop, but were unable to recover afterwards.
CoinGecko says the data suggests that airdropped tokens will likely see a spike in interest shortly after the event.
“This confirms that token airdrops are an effective marketing or growth tactic, but also indicates that interest in a specific token tends to grow after an airdrop as more people talk about it, peaking shortly afterwards and being reflected in the price of the token.”
Meanwhile, the 27 remaining tokens included in the study reached their peak gains 15 to 581 days after their airdrop date. The report says favorable market conditions and project growth pushed up token prices.
You can read the full report here.
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