Shocking Doodles Token Plunge After Airdrop on Solana
The world of NFTs and cryptocurrency is always buzzing with anticipation, especially around major events like token airdrops. But what happens when that excitement turns into a sudden market downturn? That’s the story unfolding with the Doodles project following its recent token launch and airdrop.
The Doodles Token Takes a Hit Post-Airdrop
Following a highly anticipated airdrop event on May 9, the newly launched DOOD token from the Ethereum-based Doodles NFT project experienced a significant price correction. Data from DEX Screener revealed that the token’s market capitalization plummeted by roughly 40% on the day of the airdrop, falling from over $100 million shortly after launch to approximately $60 million. This steep drop left many in the community feeling that the airdrop was “underwhelming,” as noted by one crypto commentator.
Doodles NFT Values Also Decline
It wasn’t just the DOOD token that felt the impact. The floor price of the flagship Doodles NFT collection also saw a sharp decrease on May 9. According to OpenSea data, the value of these popular collectibles dropped by roughly 60%, falling from about 3.5 Ether (ETH) per NFT on May 8 to less than 1.5 ETH. This price action brought the collective value of the collection down to around $31 million as of May 9, based on CoinGecko data.
Why the sudden drop in both token and NFT value? This pattern is not uncommon immediately after an airdrop. Many holders who receive free tokens or who held the associated NFTs in anticipation of the event often choose to sell their allocations or their NFTs into the market to realize profits. This increased selling pressure can quickly outweigh buying demand, leading to price declines. In fact, sales volume for Doodles NFTs surged by 97% on May 8, the day before the airdrop, as holders positioned themselves.
Following a Trend: Doodles on Solana
The Doodles project is the latest Ethereum-native NFT brand to launch a token and conduct an airdrop on the Solana network. This follows the path of other prominent projects like Pudgy Penguins, which airdropped its PENGU token on Solana in December. Interestingly, Pudgy Penguin’s token experienced a similar fate, dropping by around 50% on the day of its airdrop. While PENGU’s market cap did reach a high of $2.8 billion before settling around $900 million, the initial post-airdrop volatility mirrors the experience of DOOD.
Doodles announced its plan to mint 10 billion DOOD tokens on Solana back in February, with future plans to bridge them to Base, an Ethereum layer-2 network. The choice of Solana highlights a growing trend among established Ethereum projects looking for alternative networks for specific functions like token distribution.
What Does This Mean for Doodles and Airdrops?
The post-airdrop performance of the DOOD token and Doodles NFTs serves as a reminder of the inherent volatility in the crypto and NFT markets, particularly around highly anticipated events. While airdrops can generate significant excitement and reward early supporters, they often lead to immediate selling pressure as recipients look to cash out. This is a challenge projects face in managing token distribution and maintaining market stability.
For Doodles, the focus will now shift to how the project utilizes the DOOD token within its ecosystem and how it plans to build long-term value beyond the initial distribution event. The move to Solana is a strategic decision that could impact future development and community engagement.
Summary
The Doodles DOOD token and associated NFTs experienced a sharp price drop following their May 9 airdrop on Solana. The token’s market cap fell 40%, while NFT floor prices decreased by 60%. This post-airdrop sell-off is a common phenomenon in the crypto space, as seen previously with projects like Pudgy Penguins. The event highlights the immediate market dynamics surrounding token distributions and the challenges projects face in managing supply and demand after an airdrop.
