The launch of the ZkSync token is not generating as much excitement as expected as the price continues to fall
The launch of the ZkSync token is disappointing as the price of ZK drops more than 13% in one week. Since the day of its listing, the token has been subjected to numerous sell-offs, leading to a significant drop in its value.
Initially, ZK saw a brief spike in market capitalization within the first few hours of its launch. However, this upward trend was short-lived as selling pressure intensified, especially from airdrop recipients. The decline in value was exacerbated by broader unfavorable market conditions.
The zkSync airdrop program sparked a frenzy of activity among recipients. Data from blockchain analytics firm Nansen showed that a large number of the top 10,000 recipients quickly sold their newly acquired tokens. Only 30% of all addresses kept all of their distributions. Conversely, 41% of recipients sold their tokens within hours of receiving them, highlighting a common trend of rapid cash-out.
The zkSync token launch was expected to be one of the biggest sell-offs of 2024, which is expected to benefit from bullish developments such as bitcoin halving and the approval of Bitcoin and Ethereum spot ETFs. Despite these positive outlooks, investor behavior has changed, with many deciding to sell their holdings shortly after trading began.
A network outage exacerbates the sell-off of ZK tokens
ZK currently has a market capitalization of $625 million at a fully diluted valuation of $3.67 billion, which is 36% lower than the original valuation.
The situation was further exacerbated by a performance failure in the zkSync network, which was struggling due to heavy load from airdrop and subsequent selling activity. The zkSync team recognized the network performance degradation on X, which apparently accelerated the sale as recipients rushed to unload their tokens.
The launch of the ZkSync token is disappointing as the price of ZK drops more than 13% in one week. Since the day of its listing, the token has been subjected to numerous sell-offs, leading to a significant drop in its value.
Initially, ZK saw a brief spike in market capitalization within the first few hours of its launch. However, this upward trend was short-lived as selling pressure intensified, especially from airdrop recipients. The decline in value was exacerbated by broader unfavorable market conditions.
The zkSync airdrop program sparked a frenzy of activity among recipients. Data from blockchain analytics firm Nansen showed that a large number of the top 10,000 recipients quickly sold their newly acquired tokens. Only 30% of all addresses kept all of their distributions. Conversely, 41% of recipients sold their tokens within hours of receiving them, highlighting a common trend of rapid cash-out.
The zkSync token launch was expected to be one of the biggest sell-offs of 2024, which is expected to benefit from bullish developments such as bitcoin halving and the approval of Bitcoin and Ethereum spot ETFs. Despite these positive outlooks, investor behavior has changed, with many deciding to sell their holdings shortly after trading began.
A network outage exacerbates the sell-off of ZK tokens
ZK currently has a market capitalization of $625 million at a fully diluted valuation of $3.67 billion, which is 36% lower than the original valuation.
The situation was further exacerbated by a performance failure in the zkSync network, which was struggling due to heavy load from airdrop and subsequent selling activity. The zkSync team recognized the network performance degradation on X, which apparently accelerated the sale as recipients rushed to unload their tokens.