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Altcoins Listed on Binance with Great Excitement, But Data is Worrisome

Altcoins Listed on Binance with Great Excitement, But Data is Worrisome

BitcoinsistemiBitcoinsistemi2024/08/21 19:15
By:Mete Demiralp

There is negative data on the altcoin, which was listed with great excitement on the cryptocurrency exchange Binance some time ago.

Once a leading Layer 2 scaling solution, ZKsync Era is facing significant financial challenges following its recent token airdrop, with the platform’s daily revenue falling dramatically from its pre-airdrop peak of $746,000 to just $6,800.

The sharp drop in revenue occurred after the June 24 airdrop, where 3.67 billion ZK tokens, representing 17.5% of the total supply, were distributed to eligible wallets. However, the highly anticipated event triggered an exodus of users and liquidity from the network, with daily transactions dropping from a high of 1.8 million to just 200,000.

Related News BREAKING: Coinbase Adds a New Altcoin to Its Roadmap to List

The ZKsync Era decline is indicative of broader issues in the cryptocurrency market, particularly among Layer 2 solutions and new token launches. While ZK has fallen in value by 64.06% year-to-date, a similar trend was observed for LayerZero’s ZRO token, which has fallen by 19.21% in the same period.

The broader GML2 index, which looks at Layer 2 tokens, has also fallen a significant 66% since its March high, underscoring the challenges across the industry. The post-airdrop decline of ZKsync Era raises concerns about the effectiveness of token distribution strategies in the current market environment.

*This is not investment advice.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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