The cryptocurrency world experienced a resurgence of “free money” in 2024, as numerous projects distributed billions of dollars worth of tokens through airdrops. These airdrops, designed to incentivize user participation and cultivate community engagement, saw a significant increase in value due to the overall market recovery and Bitcoin’s record-breaking performance. The top five airdrops alone distributed over $19 billion worth of tokens, encompassing a wide range of projects from decentralized finance (DeFi) platforms to established NFT brands.
Leading the charge was the Hyper Foundation’s distribution of HYPE tokens to users of the Hyperliquid Network, a layer-1 blockchain optimized for high-speed DeFi transactions. Initially valued at $1.6 billion, the 31 million HYPE tokens distributed in November soared to a peak value of over $10.8 billion in a matter of weeks, making it one of the most valuable airdrops in history. Hyperliquid’s decentralized exchange (DEX), offering perpetual futures trading with up to 50x leverage, has attracted over 312,000 users since its launch, contributing to the network’s rapid growth.
Following Hyperliquid was Starknet, an Ethereum layer-2 scaling network using zero-knowledge rollups. Their long-awaited STRK token airdrop, distributing 700 million tokens to users including Ethereum stakers, reached a peak value of $3.09 billion. The STRK tokens play a vital role in Starknet’s governance, empowering the community to participate in the network’s development. StarkWare, the developer of Starknet, also signaled its intention to bring its scaling technology to Bitcoin, further expanding its reach. Furthermore, Starknet launched its staking initiative, allowing users to earn rewards by validating transactions, a first for layer-2 solutions.
Pudgy Penguins, a prominent NFT project with a market cap exceeding $500 million, made a significant splash with its PENGU token airdrop, valued at $3.064 billion at its peak. With its flagship NFT collection already established on Ethereum and its toys hitting mainstream retail shelves, Pudgy Penguins expanded to the Solana blockchain with PENGU, aiming to strengthen its brand engagement. The token distribution encompassed existing Pudgy Penguins community members, other NFT communities like the Board Ape Yacht Club and Doodles, and even holders of FTT, the defunct token of the collapsed FTX exchange.
Notcoin, a tap-to-earn game on The Open Network (TON), generated immense buzz and user activity within the Telegram-based mini app, leading to a highly anticipated airdrop. Despite some delays, the Notcoin airdrop became the largest gaming token launch of 2024, distributing approximately 80.2 billion NOT tokens with a peak value of $2.274 billion. The success of Notcoin spawned a wave of similar tap-to-earn games on TON, such as Hamster Kombat, raising questions about the long-term sustainability of this gaming model. While some view these games as a viral marketing tool for introducing users to the TON ecosystem, others argue that more sophisticated gameplay is needed to maintain player engagement beyond the initial hype.
Jupiter, a Solana-based decentralized exchange aggregator, rounded out the top five airdrops with its distribution of 1 billion JUP tokens, achieving a peak valuation of $2 billion. With plans to release an additional 3 billion JUP tokens in subsequent rounds, including a second round approved for “Jupuary”, Jupiter continues to incentivize community participation. As one of the largest DeFi projects on Solana, Jupiter has facilitated over $2 trillion in trading volume, solidifying its position as a key player in the Solana ecosystem. The upcoming Catstanbul conference in Istanbul further demonstrates Jupiter’s commitment to community building and engagement.
Beyond the top five, several other notable airdrops exceeded $1 billion in peak value. Movement Network, an Ethereum layer-2 scaling solution, distributed 1 billion MOVE tokens to its community and early participants, reaching a value of $1.5 billion. ZKsync, another Ethereum layer-2, granted 3.7 billion ZK tokens to community wallets, valued at $1.2 billion at their highest point. Eigenlayer, an Ethereum staking platform, conducted two airdrops totaling nearly 200 million EIGEN tokens, reaching a combined value of $1.1 billion. Finally, Wormhole, a cross-chain protocol, launched its W governance token with a 617 million W allocation for its community and ecosystem, hitting a peak value of $1 billion. These airdrops, collectively, demonstrate the significant impact of token distribution on both project growth and individual user rewards within the cryptocurrency landscape.
