As an analyst with several years of experience in the crypto market, I find the recent selloff of ZK tokens and the subsequent price drop to be a concerning development. The data from Nansen indicating that nearly half of the addresses that received the allocation have already sold it all is a significant red flag. This massive selloff led to a loss of over 30% of the token’s value in under 24 hours, as revealed by Coingecko data.
As an analyst, I’ve examined the recent developments surrounding zkSync’s unveiling of ZK tokens and the subsequent airdrop. According to Nansen’s insights, approximately half of the wallets that received these funds have already chosen to sell their entire allotment.
In just a day, the value of ZK token dropped dramatically by more than 30%, following a substantial market decline.
Massive Selloff of ZK Tokens
As an analyst, based on the data I’ve reviewed from Nansen’s analytics platform, approximately 41% of the addresses that received the zkSync token (ZK) during its distribution yesterday have already sold their entire allocations. Some of these addresses hold substantial amounts, up to 2.4 million tokens, and have completely liquidated their positions.
The Nansen data discloses that around 29.8% of the token address holders have offloaded a portion of their tokens. Among the top ten wallets, three have cashed out relatively small portions, five still hold their full allotment, and two have completely liquidated their stash. Over 491 million ZK tokens have been traded since they were distributed starting on Monday.
Although the data analyzed covered merely the top 10,000 wallets, accounting for around 1.4% of the total number of addresses that received the airdrops.
Last week, zkSync revealed that approximately 695,000 wallets were eligible for receiving around 3.75 billion tokens in an airdrop. As per data from Matter Labs’ analyst Landon Gingerich, published since then, over 491,000 of these wallets have already claimed their allocated tokens.
Within the initial 2 hours following the commencement of the claim period, approximately 45% of the entire airdrop allotment was successfully claimed, as reported in a recent X post from the zkSync Association – a newly introduced non-profit initiative spearheaded by Matter Labs last week. The overwhelming influx of claims triggered a substantial network issue for zkSync.
The zkSync team announced on Twitter that their network is currently experiencing heavy usage, which might lead to subpar service for certain Remote Procedure Call (RPC) functions.
Massive Drop in ZK Token Price
Based on extensive trading activity, Coingecko’s data reveals that the value of ZK token has dropped by over 30% since its launch. At the time of its listing, the token reached a high of $0.30. However, it subsequently declined and is now hovering around $0.20.
Currently, the price of ZK token is at $0.22, representing a 25% decrease in value over the last 24 hours. Its market capitalization amounts to $825 million, placing it among the top 100 tokens by total valuation.
During the recent price decrease and token distribution process, some concerns have arisen regarding how the zkSync team managed Sybil wallets. Several questionable wallets reportedly met the criteria for the airdrop.
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2024-06-18 16:32