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Ether.fi $210M Airdrop Sparks Market Turbulence, ETHFI Value Drops By 35%

ETHFI, the governance token of the decentralized liquid staking protocol Ether.fi, debuted for $4.13 following its distribution through its airdrop on March 18. 

However, since the $210 million airdrop, the value of ETHFI has experienced a significant decline, plummeting over 35% to its current trading price of $3.05, according to CoinGecko data.

ETHFI Airdrop Attracts 20,000 Participants

Market expert Tom Wan has provided a summary of the ETHFI airdrop. Out of the total supply of 16.8 million ETHFI tokens, approximately 28% have been claimed by participants. 

The airdrop attracted around 20,000 claimers, showcasing considerable interest in the token distribution. Notably, the top wallets, accounting for 1.67% of the total distribution, have the potential to receive between 10,000 and 25,000 ETHFI tokens, reflecting substantial holdings.

Ether.fi

Most claimers, comprising approximately 67% of participants, are expected to receive a lower allocation of ETHFI tokens, ranging from 175 to 500. 

This distribution strategy aims to ensure a broader and more equitable dispersion of the tokens among participants. However, an interesting observation is that 76% of claimers have transferred their ETHFI tokens to other wallets, indicating a potential desire for liquidity or trading activities.

Furthermore, it is noteworthy that 38% of the token receivers are new wallets, suggesting an expansion of the ETHFI user base as of May 1, 2023. This influx of new participants showcases a growing interest in the governance and utility offered by Ether.Fi’s protocol.

Ether.fi Witnesses Surge In Total Value Locked

Ether.fi has experienced notable growth in net deposits and Total Value Locked (TVL), as evidenced by data provided by Token Terminal. However, the platform has faced fluctuations in its active user base. 

According to Token Terminal, net deposits on Ether.fi have significantly increased, reaching $2.99 billion over the past 30 days alone. This marks a significant growth rate of 136.9%.

Simultaneously, the TVL on Ether.fi has mirrored the surge in net deposits, which also amount to $2.99 billion over the same 30-day period. This metric represents the total value of assets, predominantly cryptocurrency, locked within the protocol. 

However, while Ether.fi has witnessed robust growth in net deposits and TVL, the platform has experienced fluctuations in its active user base. Daily active users have shown a considerable decline of 54.3% over the past 30 days, currently standing at 506. 

Ether.fi

Similarly, weekly active users have experienced a more moderate decline of 3.5%, currently standing at 5,780. This suggests that while there has been a slight reduction in user engagement every week, a significant portion of the user base remains actively involved with the protocol.

The most substantial decline in user activity is observed in monthly active users, with a notable drop of 68.9% over the past 30 days. The figure currently stands at 14,740 users. 

Overall, the distribution of the ETHFI token through the airdrop has garnered significant attention and participation. At the same time, the token’s value has experienced a decline since its initial listing, the long-term potential and impact of ETHFI within the Ether.Fi ecosystems are yet to be fully realized.

Ether.fi

Featured image from Shutterstock, chart from TradingView.com

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Starknet Trading Debut Sees Initial Excitement Fade As STRK Plummets Over 50%

In a highly anticipated move, Starknet (STRK), an Ethereum (ETH) roll-up protocol, commenced trading on prominent cryptocurrency exchanges including Binance, Bybit, Bitfinex, and OKX on Tuesday. 

The token’s launch was accompanied by an airdrop, distributing a staggering 728 million tokens to over one million addresses, making it one of the largest airdrops of the year. However, the initial excitement was dampened as the token experienced a significant retracement of 53.8%, plummeting to a current price of $2.04.

However, to better grasp the protocol’s capabilities and assess its potential future price actions, it is crucial to delve into the underlying technology and the buzz surrounding this player within the top 60 cryptocurrencies, boasting a substantial market capitalization of $1.4 billion.

Unveiling Starknet

Starknet operates as a Layer 2 solution, offering scalability and Ethereum-level security by generating STARK proofs off-chain, which are relayed on-chain. 

Developed by StarkWare Industries, a blockchain firm based in Israel, Starknet was specifically designed to address Ethereum’s scalability concerns. The protocol was fully launched in February 2022 as a permissionless Layer 2 network, allowing developers worldwide to build decentralized applications on its infrastructure. 

StarkWare also developed another platform called StarkEx, which has been live since June 2020. However, StarkEx is a permissioned network tailored to specific decentralized app (Dapp) requirements.

Founded in 2018, StarkWare has garnered support from renowned investors such as Sequoia Capital, Paradigm, and Coatue, solidifying its position within the industry. In a Series D funding round held in May 2022, the company raised $100 million, valuing StarkWare at an impressive $8 billion. 

StarkWare has raised $261 million in funding, demonstrating strong investor confidence in its vision and technology.

With that noted, a prominent decentralized finance (DeFi) researcher who goes by the pseudonym “DeFi Ignas” has identified three key catalysts that could fuel the long-term growth of Starknet. 

STRK Airdrop And DeFi Incentives 

The researcher highlights Starknet’s utilization of STARKs, a cryptographic proof system, to validate transactions on the Ethereum network. In contrast to other zero-knowledge rollup solutions that employ SNARKs, STARKs offer quantum resilience and the potential for numerous scalability improvements. 

In addition, DeFi Ignas believes that the use of the Cairo Development Language ensures that the protocol is resistant to “lazy copy-paste forks,” thereby increasing its “technical robustness.”

Ignas suggests that Starknet’s differentiators, such as “Quantum Resilience” and the comparison between SNARKs and STARKs, present an intriguing potential that is yet to be fully realized. By effectively communicating these distinctive features, Ignas suggests that Starknet can capture the imagination of the wider audience, generating increased interest and adoption.

Furthermore, Ignas identifies several factors that could contribute to the growth of the Starknet ecosystem. Firstly, the airdrop of STRK tokens is believed to create a “wealth effect,” attracting capital into the ecosystem. 

Additionally, Starknet plans to allocate 50 million STRK tokens to incentivize DeFi protocols, which, in turn, will drive growth in Total Value Locked (TVL). Protocols operating on Starknet are expected to distribute new tokens to users through airdrops. 

On top of that, the STRK token has a “robust” utility model for Ignas, serving as a means to pay gas fees, distribute voting power through delegates, and facilitate native staking for governance and security. 

The initial staking Annual Percentage Yield (APY) is set at 12%, incentivizing users to stake their tokens rather than sell them. While some individuals expressed dissatisfaction with not receiving the airdrop, Ignas notes that 27% of survey respondents (3.4k people) received STRK tokens, indicating potential for growth within the Starknet ecosystem but not necessarily for the STRK token itself.

Starknet

Featured image from Shutterstock, chart from TradingView.com

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Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops

Celestia is the star of the modular network in late 2023 after its airdrop and staking TIA has become a good way to receive airdrops. Celestia is a chain that a lot of people overlooked because, before the launch, there was not a lot of information about Celestia and the airdrop. However, in the fast-paced world of cryptocurrency, overlooked gems can often surprise the market, and Celestia Network is no exception. 

Celestia (TIA) Airdrop And What People Missed

Celestia network had stayed out of the limelight until it announced an airdrop eligibility site. Lots of people didn’t bother checking if they were eligible for an airdrop, because they felt it was irrelevant, people didn’t claim their airdrop at the deadline as requested by the team, which made the team extend the date to give more people the chance to claim. 

At the end of the claim period, there were a lot of unclaimed airdrops to the extent the team had to distribute all the unclaimed airdrops to the wallets that claimed their airdrops, meaning that eligible wallets got double their initial allocations. 

After the airdrop, the team focused on developing and creating utility for their chain, making the price of TIA skyrocket, as the demand for the chain and its token started to grow. 

TIA Utility: Data Availability and Scalability

Celestia gives great utility towards Data Availability and Scalability giving other chains or upcoming chains a foundation to learn and work on. The Celestia team’s innovative approach, combined with partnerships and a focus on utility, set it apart in a crowded space. 

In this guide, we will delve into the dynamics of Celestia, explore its transformative airdrop strategy, and discuss how staking TIA can position you for not only handsome rewards but also exclusive airdrops. 

Unlike many projects that fizzle out post-airdrop, Celestia took a different path. The team continued developing the platform, adding significant utility to the Celestia chain. This utility, focused on data availability and scalability, spurred demand for the native token, TIA, ultimately driving its price higher.

Celestia (TIA) Network Collaborations

Celestia has partnered with most roll-ups of other chains like the Manta network which is another rollup that has been able to combine utility from the calamari network, and the EVM network. Collaborating with Celestia for better scalability and data availability increased the demand for Celestia(TIA). 

Celestia (TIA) Network Airdrop Distribution

Celestia changed the way they distributed their TIA airdrop, which was different from what the market was used to. The Celestia pre-launch had incentivized node running events, rewarding node runners, but that was not enough to bring more people into exploring its ecosystem, it had to distribute its airdrop by rewarding all EVM users. If you had interacted on the EVM chain, you were eligible for the TIA airdrop. 

Now, let’s delve deeper into the details surrounding TIA staking, Celestia’s impact on the crypto space, and the broader implications for investors seeking to navigate this dynamic landscape.

Reasons To Stake TIA

Staking TIA offers a multifaceted investment strategy, combining an attractive Annual Percentage Rate (APR), potential airdrop eligibility, and the broader positive trajectory of the Celestia platform. Taking a closer look at TIA staking, investors are drawn by the appealing APR, often exceeding 10%. 

However, it’s essential to note that the choice of validator plays a crucial role in determining the staking rewards. As the Celestia platform continues to innovate and gain prominence, the allure of TIA staking is further heightened.

Celestia’s commitment to enhancing scalability and data availability. This, in turn, has led to increased demand for TIA, solidifying its position as a valuable asset within the crypto market.

Celestia’s unique utility and game-changing capabilities have positioned it as a frontrunner in the blockchain space. As a result, any new chain looking to launch and conduct a successful airdrop finds integrating TIA stakers as an effective strategy to garner attention. This is particularly true for projects building on the Celestia platform, where TIA’s association adds a layer of credibility and visibility

The association of TIA with projects like Dymension, where TIA stakers met airdrop eligibility criteria, underscores the growing trend of projects leveraging TIA stakers for increased visibility and credibility. As more projects within the Celestia chain ecosystem emerge, the potential for additional airdrops targeted at TIA stakers becomes increasingly promising.

While this analysis sheds light on the potential benefits of staking TIA, it’s crucial to acknowledge the ever-changing nature of the crypto market. Therefore, individuals considering TIA staking should conduct thorough research and stay updated on market trends to make informed decisions. 

Exchanges to Buy Celestia (TIA)

To embark on the journey of acquiring TIA, one can explore various prominent exchanges where TIA is listed. Platforms such as Binance, Kucoin, OKX, and Bybit offer a convenient gateway for purchasing TIA. 

Celestia

A critical component of the staking process is securing a Keplr wallet. The Keplr wallet is an essential tool for managing and staking TIA securely. Users can download the wallet, create a new wallet by saving the seed phrase, and take precautions to safeguard their keys. The importance of protecting access to one’s crypto assets cannot be overstated, as the security of the Keplr wallet directly correlates with the safety of the stored TIA holdings.

How to Get Your TIA Wallet Address

Go to your Keplr wallet and get your TIA address. You can get it by typing TIA in the search bar, but if it’s not available, you have to make it available.

Click on the hamburger sign at the top left corner:

TIA

Click on Manage Chain Visibility next, type TIA, enable it, and Save it:

Celestia 2

Go to your wallet dashboard and copy your TIA address, remember, the address is supposed to start with “Celestia”. Go to your crypto exchange and send TIA to that address. 

The process of obtaining TIA is straightforward, with the cryptocurrency available across major exchanges. Additionally, users can explore the option of bridging from other Cosmos chains, such as converting ATOM on the Cosmos chain or INJ on the Injective chain to TIA.TIA 2

Once TIA is secured in the Keplr wallet, staking becomes the next logical step. Users can access the Celestia Staking dashboard on Keplr, choose a validator based on their preferences, and stake their TIA accordingly. Choosing a validator that offers a high percentage of rewards is best.

It’s important to note that unstaking TIA involves a 21-day processing period, requiring users to plan their actions accordingly. 

Protect Your Staked TIA

Securing a Keplr wallet is paramount for those looking to engage in TIA staking. The wallet serves as a secure tool for managing and staking TIA, requiring users to download it, create a new wallet with a saved seed phrase, and take necessary precautions to safeguard their private keys. 

Never store your seed phrase in a place where it can be accessed on the internet. Do not copy your seed phrase on your device. It is best to write down your seed phrase on a piece of paper and keep it in a place only you can access.

CONCLUSION

It’s crucial to emphasize that the information provided here is not financial advice, but rather an analysis of the current trends in the crypto market. However, the logic behind acquiring TIA and staking is compelling. 

The demand for TIA has been on a consistent uptrend, driving its value from an initial $2.2 to well over $10. The combination of robust staking rewards and the prospect of participating in airdrops makes TIA an enticing asset for investors looking to maximize their returns.

TIA price chart from Tradingview.com (Celestia Network how to stake)

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2023’s Crypto Bounty: These Top 13 Airdrops Distributed Over $4 Billion

023 has emerged as a significant year for crypto airdrops. A recent analysis revealed that out of the 50 most substantial crypto airdrops since 2020, 13 occurred in 2023, collectively distributing roughly $4.56 billion worth of tokens.

These figures are calculated based on the tokens’ values at their respective all-time highs (ATHs), painting a picture of substantial distribution.

The year 2023’s airdrop landscape was less crowded than 2021, which had 18 entries in the top 50, but the impact was notable. A report from CoinGecko highlights this trend shift, contrasting it with the mere 5 airdrops in 2020 and 14 in 2022.

Arbitrum Leads 2023’s Airdrop Charge

Arbitrum, an Ethereum layer 2 scaling solution, topped the 2023 airdrop chart by distributing ARB tokens valued at $1.96 billion on March 23. This move significantly impacted its total value locked (TVL), which surged by 147% during the anticipation period.

This airdrop alone constituted a substantial portion of the total value distributed in the year. Celestia, with its TIA tokens, followed suit, distributing $728 million on October 31.

The airdrop targeted a diverse group, including developers, Ethereum rollup users, and stakeholders in the Cosmos Hub and Osmosis.

Blur’s first airdrop, which handed out $446 million worth of BLUR on February 14, ranked third. The success of this initial airdrop set the stage for a second, which distributed an additional $327 million, ranking fourth.

Crypto airdrops in 2023.

A Closer Look At 2023’s Crypto Airdrop Trends

While Arbitrum, Celestia, and Blur’s first airdrop made up 69.9% of the total airdrop value in 2023, the year saw diverse contributions across the sector. Jito, Worldcoin, Aidoge, and other projects followed, each adding to the cumulative value and diversity of the airdrops.

The total value distributed in 2023 may have seen a decline compared to 2022, but it’s essential to consider the market cycles these newer tokens have experienced.

Unlike earlier tokens which saw the 2021 bull market and the 2022 non-fungible token (NFT) market surge, many of 2023’s airdropped tokens are yet to undergo a full bull market cycle.

In terms of performance, Arbitrum and Worldcoin have shown significant gains, with ARB rising by 22% in the past week to trade at $1.33, at the time of writing and WLD by over 60% in the past two weeks to trade at $3.86, at the time of writing.

Arbitrum (ARB) price chart on TradingView

Celestia and Blur follow closely in terms of price appreciation, with both tokens up by 10.7% and 5.7% respectively in the past 7 days.

Conversely, Jito, despite being the newest among them, has seen a dip in its value down by 9.4% in the past two weeks but shows signs of recovery in the past week, up by 9%, illustrating the dynamic and often unpredictable nature of token valuations post-airdrop.

Featured image from iStock, Chart from TradingView