88% of NFT Airdrops Lose Value Shortly After Launch – DappRadar

Certainly, airdrops play a vital function within the non-fungible token ecosystem by fostering a group, driving engagement, rising challenge visibility, and offering worth to early adopters. However there’s a catch. The latest crypto market analysis exhibits that over 88% of airdropped crypto tokens and non-fungible token cash lose worth inside simply three months after the token technology occasion. On this article, we will assess whether or not airdrop is a shortcut to NFT adoption, or simply an costly hype machine.

Most NFT Airdrops Lose Worth Shortly After TGE

On September 18, DappRadar.com, an on-chain crypto market information aggregator and non-fungible token explorer that tracks non-fungible token collections from greater than 10 blockchain networks, printed an unique analysis report regarding crypto and non-fungible token projects-backed airdrops. Of their analysis, the DappRadar analysis crew has discovered that +88% of airdropped non-fungible token-backed cash have misplaced their worth shortly after going dwell on the blockchain.

Airdrops stay considered one of Web3’s strongest however dangerous progress instruments. They spark consideration, however solely sturdy ecosystems can flip that into lasting communities.

We break all of it down in our newest report 👇https://t.co/GxolTfLPzH

— DappRadar (@DappRadar) September 18, 2025

By description, an airdrop is a advertising technique the place a non-fungible token challenge distributes free new tokens or cash to energetic customers, usually as a reward for early engagement, holding particular tokens, or finishing easy duties. Despite the fact that airdrops can supply free crypto, NFT customers needs to be cautious of scammers and hackers and analysis the legitimacy of any airdrop or alternative earlier than taking part.

Many NFT initiatives use airdrops to construct group and create buzz, rewarding early adopters and current non-fungible token holders with free digital property to foster long-term engagement and decentralization. By distributing tokens broadly, non-fungible token initiatives additionally enhance the notice of their merchandise, drive adoption of their platform, and may even present holders with voting rights, contributing to the community impact essential for a crypto challenge’s success in a aggressive market.

Airdrops come in numerous codecs, together with retroactive airdrops, which reward customers who’ve interacted with a protocol up to now; incentive airdrops, which encourage ongoing conduct comparable to buying and selling, staking, or referrals (e.g., Blur’s factors system), and group airdrops, which reward non-fungible token holders, builders, or social group members. Airdrops have grow to be one of the vital efficient advertising methods in Web3.

Blur NFT Coin Fell +50% Shortly After Launch

The DappRadar NFT crew has highlighted $Blur as one of many non-fungible token cash that diminished its worth barely three months after launch. The BLUR token is the native cryptocurrency of the Blur platform, a high-performance NFT market and market information aggregator designed for skilled merchants. BLUR tokens serve two major features: governance, permitting holders to vote on platform selections, and incentives, rewarding customers for buying and selling exercise, itemizing NFTs, and offering liquidity.

Take Blur for example. Its airdrop in 2023 flipped the NFT market in a single day, capturing 70%+ of Ethereum NFT buying and selling quantity and outpacing OpenSea by as much as 5x in every day buying and selling.

However here is the catch: a lot of that surge got here from just a few high-frequency farmers, not long-term customers. pic.twitter.com/UCBVQrwylf

— DappRadar (@DappRadar) September 18, 2025

Blur launched its Blur NFT coin in February 2023. Blur’s token launch was preceded by months of “seasonal” rewards, the place merchants amassed factors for exercise comparable to itemizing NFTs, offering liquidity, and demonstrating platform loyalty. In just some days, Blur NFT had captured greater than 70% of Ethereum’s NFT buying and selling quantity, forcing its rival OpenSea NFT market to slash its charges and rethink creator royalties.

Sadly, the Blur token, which initially debuted at round $1.20, rapidly declined days later after claimants offered their holdings. This token has additionally drifted under $0.10 by 2025. By late 2023, Blur’s NFT market share had begun to say no as nicely, stabilizing within the 20–40% vary after the preliminary surge. On the time, OpenSea dominated the NFT market by way of distinctive energetic wallets, interesting extra to informal collectors and creators.

Different NFT airdrops that adopted the same monitor had been LooksRare and X2Y2. These NFT market platforms distributed tokens to OpenSea NFT merchants in 2022. Each briefly captured vital quantity, however a lot of it was wash buying and selling. It didn’t take lengthy earlier than exercise fell sharply as a result of rewards dried up. Their tokens, as soon as value a whole bunch of tens of millions, now commerce at a fraction of their peak values. Extra just lately, memecoin-style NFT airdrops, Memecoin ($MEME), which briefly energized collectors, have additionally did not maintain NFT market hype.

Lesson Learnt

The important thing lesson from NFT airdrops is that although they’re extremely efficient at redirecting liquidity, they wrestle to create sustainable communities. Merchants will comply with rewards, however collectors and creators search belief, usability, and cultural relevance, elements that tokens alone can’t ship. The problem for NFT initiatives is not easy methods to seize consideration, however to grasp which initiatives create hype and which of them create historical past.

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