Cryptocurrency

Arbitrum airdrop hype helps zkSync addresses jump over 5X in a week

Arbitrum, a layer-2 scaling solution for Ethereum, announced the airdrop of its ARB governance token on March 16, with eligible receivers expected to get the token by March 23. The hype around its airdrop has now helped another layer-2 solution, zkSync, to see significant week-over-week growth.

ZkSync is another layer-2 scaling solution for Ethereum, supporting nonfungible tokens (NFT), and atomic swaps and transfers of Ether (ETH) and ERC-20 tokens within the Ethereum network.

According to data from crypto on-chain analytic firm Nansen, more than 39,000 addresses have bridged over $871 million to zkSync in the last seven days. The number of addresses bridging to zkSync has swelled by 5x in the last week.

After the Arbitrum airdrop, zkSync and StarkNet are regarded as the upcoming airdrops with the most potential value. On March 17, nearly 5,000 people deposited more than 536 ETH using the zkSync bridge, and almost 3,000 users deposited over 234 ETH using the StarkNet bridge.

Although zkSync neither has a native token nor announced any airdrop, the enthusiasm around the Arbitrum airdrop has led many proponents to believe they would be rewarded in the near future.

The hype around the airdrops comes amid multiple fake and scam airdrops being attempted by scammers using Arbitrum branding.

A crypto airdrop is a promotional tool for crypto projects to generate hype around the project. The crypto projects behind these airdrops often directly deposit digital tokens into the wallets of active blockchain community members as a gift. Many of these airdrops have specific preset eligibility criteria that reward users for spreading awareness around the project.

Airdrops have been popular since the early stages of the crypto ecosystem, with the first airdrop coming in 2014. Projects have relaxed marketing strategies in recent times owing to regulatory scrutiny.

Related: Ethereum layer-2 solutions may focus less on token incentives in the future

Not all crypto airdrops are equally valuable owing to multiple factors such as the people behind the projects, the use cases that the project offers and much more, However, Arbitrum, Optimism, and ZkSync are some of the early layer-2 solutions with a proven records. This has attracted more traders to aim for the airdrop as it would prove to be more valuable than the usual crypto airdrops.

Articles You May Like

Trump vows new US ‘golden age’ as he moves to unwind Biden era
Here are the top 10 U.S. stock analysts, according to TipRanks
Tax-exempt bonds axed in menu of options floated by Ways and Means
New interval funds enter market as investors chase returns
Here’s how climate change is reshaping home insurance costs in California — and the rest of the U.S.