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ThecoinrepublicNewsHow Will PancakeSwap Airdropping 2.4 Million ZK...
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How Will PancakeSwap Airdropping 2.4 Million ZK Tokens Affect The Price

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  • PancakeSwap airdrops 2.45M zkSync tokens from July 5 to August 5, boosting community engagement.
  • ZK price surges 8.67% to $0.1645 but remains 47% below the June 17 high of $0.3098.
  • The previous airdrop saw a 41% sell-off, potentially repeating if the current airdrop leads to similar market behavior.

PancakeSwap, one of the leading decentralized exchanges (DEX), recently rolled out a massive community reward program, giving away 2,452,128 zkSync (ZK) tokens. This airdrop started on July 5 at 10:30 am UTC and will end on August 5 at 10:30 am UTC. It is to appreciate the community’s support since the launch of zkSync PancakeSwap on July 2023.

As per the announcement, PancakeSwap is making good progress with the zkSync platform, including features like seamless swaps, yield farming, prediction markets, fiat on-ramp, position manager, and syrup pools.

These improvements have made the platform record more than 178.31 million in trading volume, 294.52 million in total value locked (TVL), and onboard more than 1.9 million traders. These milestones demonstrate the growth of the platform and the engagement of the community that this airdrop will now incentivize.

Eligibility Criteria for the PancakeSwap Airdrop

The airdrop will be distributed across different categories of users, including the current veCAKE holders, past contributors, and future contributors. Current veCAKE holders are incentivized as they hold more stake in the protocol, and past contributors are acknowledged for their activities in trading, contributing to liquidity, and engaging in previous zkSync projects.

Also, future contributors who keep on providing liquidity and trading activities on zkSync PancakeSwap will also be rewarded to encourage more people to use the platform.

At the same time, the Eligible users can get their ZK tokens by going to the PancakeSwap website and linking their wallets to the pop-up window instructions. The distribution is also biased towards veCAKE holders and past contributors, with future contributors being rewarded in the coming phases. 

At the end of the claim period, the remaining tokens will be transferred to the PancakeSwap ecosystem for future developments and community contributions.

Market Reactions to Previous Airdrops

Earlier in June, zkSync launched its native ZK token, which could be one of the most significant airdrops in 2024. Despite the hype and anticipation, including bullish events like the Bitcoin halving and Ethereum ETF approval, the market reacted differently than expected.

Many investors opted to sell their airdropped tokens shortly after trading began, contributing to a price drop. 

Analyzing the data from Nansen’s ZK airdrop dashboard, it was seen that about 30% of addresses held all the tokens, while 41% sold all their tokens and 29% sold partially. It led to nearly 495.8 million ZK tokens being sold at around $109.6 million, prompting a bearish trend in the market.

zkSync (ZK) Price Trend 

The ZkSync (ZK) price has been bullish in the last 24 hours, swaying between an intra-day high and low of $0.1665 and $0.1477, respectively. At press time, the ZK price was trading at $0.1645, an 8.67% surge from the support level. Despite the surge, ZK’s price is still 47% from its all-time high of $0.3098 on June 17th. 

PancakeSwap
ZK/USD 24-hour price chart (source: TradingView)

During the recovery, ZK’s market capitalization surged 8.10% to $604,253,676, while the 24-hour trading volume dipped by 27.40% to $205,546,029. 

If the bulls breach the resistance level of $0.1665, the next levels to watch for would be around $0.1700 and $0.1950. 

However, if the airdrop event is to reoccur like last time and airdrop holders sell most of their tokens, the bears would take control. The price in this scenario may retest the support level at $0.1600 before potentially dropping further towards $0.1500. 

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Andrew Smith
Andrew Smith
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
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