The price of Solana (SOL) goes up as air drops attract new users to the network

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In the past six months, blockchain projects have resurfaced that issued token airdrops. The air drops from Uniswap (UNI) and MEME in particular will be remembered as recipients were rewarded with winnings between $ 20,000 and $ 600,000 just for holding the tokens.

A competitor of Ethereum (ETH), which has launched numerous projects with Airdrops in the past three weeks, is Solana (SOL), an open source project that focuses on the use of blockchain technology to provide decentralized financial solutions.

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While Solana is not making a specific concerted effort to kick-start these projects, the protocol’s main decentralized exchange serum (SRM) was responsible for the recent COPE airdrop, which distributed 2,000 tokens to users participating in Solana and Serum’s joint DeFi hackathon have participated.

Upon being dropped, COPE traded for $ 0.50 in serum on March 30, and the price of the token rose to a high of $ 5.43 on April 11, rewarding holders with a reward of $ 10,860.

SOL / USDT 4 hour chart. Source: TradingView

The success of the COPE airdrop resulted in a number of token launches and airdrops with similar-sounding names, including HOPE, ROPE, and KOPE, whose launches on the Solana blockchain coincided with a 55% increase in SOL price since early April.

Airdrops on the network may have played a minor role in the recent price spike as users require SOL to obtain airdrown tokens. However, this cannot be determined from the available data.

Interactions on the Solana blockchain, including adding new tokens to the Sollet wallet, require small amounts of SOL to complete the contract execution. Hence, users who want to quickly sign up for Airdrops before replenishing would have to buy SOL and fund their wallets to create new addresses for the tokens thrown out of the air.

Analysts expect the airdrop trend to continue

For those concerned that they missed something or that “airdrop season” is over, a recent tweet from Solana’s Twitter feed suggests that the Solana ecosystem is just getting started, which means that the Probability of future airdrops remains high.

New users are the lifeblood of successful blockchain networks, and the use of airdrops remains one of the most common methods of raising awareness of young projects and reducing liquidity from one protocol to another.

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