The crypto market encountered a setback yesterday as Bitcoin (BTC) fell short in its attempt to reach $70,000. Despite this, several other cryptos managed to maintain their positions on the list of altcoins trending today.

Among these, some coins showcased solid performance, while others trended for different reasons despite not delivering strong results. As of today, October 22, the top three trending altcoins on CoinGecko are Scroll (SCR), Solidus Ai Tech (AITECH), and KOALA AI (KOKO).

Scroll tops the list of altcoins trending today due to its native token, SCR. On Monday, October 21, Scroll, a leading zero knowledge rollup built on Ethereum, announced the launch of SCR. According to its official statement, the launch also comes with an airdrop for contributors and its community.

“We’ve allocated 55,000,000 SCR tokens (5.5% of the total supply) to participants who have actively contributed to the Scroll ecosystem through their on-chain activities in our Sessions Program. Out of this allocation, 40,000,000 SCR (4% of the total supply) are proportionally allocated among onchain participants who have accumulated 200 or more Marks as of October 19, 2024,” the project wrote.

One reason Scroll is trending is the controversy surrounding its airdrop allocation. On X (formerly Twitter), numerous early adopters are expressing frustration over transacting thousands of dollars on the chain only to receive SCR tokens valued significantly less.

For example, a pseudonymous user with the handle Picolas Cage noted that this allocation means that the project has lost a six-figure DeFi user.

Read more: 10 Best Crypto Exchange Reviews for October 2024

Meanwhile, as seen above, SCR launched at approximately $1.70. However, its value has dropped in the last 24 hours and is currently trading at $1.24. In addition, it might be too early to predict SCR’s next price movement, as it seems to still be in price discovery mode.

Solidus Ai Tech (AITECH)

This is the third time AITECH is on BeInCrypto’s trending altcoins list. This time, the price did not increase as it has seen a modest 3% decline in 24 hours. However, it remains on this list due to the broader market interest in the project

On the daily chart, the Relative Strength Index (RSI) has dropped below the 50.00 neutral region. This suggests that the momentum around the token is bearish, and the recent downturn can accelerate.

If that remains the same, then SCR’s price might retrace to$0.080 from $0.094, where it currently stands. However, if buying pressure increases, the prediction might invalidated, and the trending altcoin’s value might jump to $0.12.

KOALA AI (KOKO)

KOALA AI is another altcoin that has previously appeared on this list. Like the previous time, KOKO is trending because of its massive price increase. 

Over the last 24 hours, KOKO’s price has increased by 125% and currently sits at $0.0000067. Based on the daily chart, the Bollinger Bands (BB) has expanded, indicating a high level of volatility around the cryptocurrency.

However, the upper band of BB has touched KOKO’s price, indicating that it is overbought and a decline looms. Assuming the lower band tapped the price, it would have been termed oversold. 

Read more: Which Are the Best Altcoins To Invest in October 2024?

Considering this current condition, the altcoin’s value might drop by 20% to $0.0000055. On the other hand, if bulls continue to buy the token, it might sustain the uptrend and could rally to $0.0000084.

Ethereum price struggled to continue higher above the $2,750 resistance. ETH started a downside correction and traded below the $2,680 support.

• Ethereum started a downside correction below the $2,680 support.
• The price is trading below $2,650 and the 100-hourly Simple Moving Average.
• There was a break below a key bullish trend line with support near $2,680 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it clears the $2,650 and $2,680 resistance levels.

Ethereum Price Trims Gains

Ethereum price remained stable above the $2,620 level like Bitcoin. ETH extended gains above the $2,650 resistance level to move further into a positive zone.

However, the bears remained active near the $2,765 level. A high was formed at $2,765 and the price started a downside correction. There was a break below a key bullish trend line with support near $2,680 on the hourly chart of ETH/USD.

The pair dipped below the $2,650 level. A low was formed at $2,626 and the price is now consolidating near the 23.6% Fib retracement level of the downward move from the $2,757 swing high to the $2,626 low.

Ethereum price is now trading below $2,680 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,665 level. The first major resistance is near the $2,700 level. It is close to the 50% Fib retracement level of the downward move from the $2,757 swing high to the $2,626 low.

A clear move above the $2,700 resistance might send the price toward the $2,725 resistance. An upside break above the $2,725 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,780 resistance zone in the near term. The next hurdle sits near the $2,840 level or $2,880.

More Downsides In ETH?

If Ethereum fails to clear the $2,680 resistance, it could start another decline. Initial support on the downside is near the $2,625 level. The first major support sits near the $2,600 zone.

A clear move below the $2,600 support might push the price toward $2,550. Any more losses might send the price toward the $2,500 support level in the near term. The next key support sits at $2,440.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,600

Major Resistance Level – $2,680

Ethereum Layer-2 (L2) network Scroll has experienced a significant drop in its total value locked (TVL). It shed $170 million since its peak on October 16, 2024.

The rise and fall of Scroll’s TVL is emblematic of a broader trend in the crypto space. Short-term incentives such as airdrops can drive rapid growth in TVL but may not foster lasting user engagement.

Scroll’s total value locked (TVL) surged ahead of its highly anticipated snapshot on October 19. The snapshot was part of the protocol’s strategy to distribute its native SCR tokens through an airdrop. As BeInCrypto reported, the announcement on October 9 triggered a rush of activity as airdrop farmers scrambled to boost their holdings in hopes of qualifying for the token rewards.

DefiLlama data shows that between October 9 and October 16, Scroll’s TVL jumped by $157.70 million. It moved from $838.05 million to $995.75, signifying a surge of almost 20% in a week. However, the spike in Scroll’s TVL was short-lived. It has been dropping since the days leading up to the snapshot, recording $824.82 million as of writing.

Read more: What are Crypto Airdrops?

TVL refers to the total value of assets locked in a decentralized finance (DeFi) protocol. A surge in TVL usually indicates an increase in the amount of funds deposited and utilized within DeFi platforms. On the other hand, TVL drops indicate a decrease in the amount of assets locked in DeFi protocols.

TVL drops generally point to various reasons like market volatility, changes in user behavior, or events affecting the DeFi space. For Scroll, the rapid drawdown highlights a common issue with airdrop farming. While these events can create short-term liquidity surges, they often do not lead to long-term user engagement or value retention.

Even as the wait for the Scroll airdrop ends, some participants remain dissatisfied. Specifically, some users expressed concerns about insiders unfairly accumulating large amounts of marks.

“Scroll team is so greedy! After allocating 23% to themselves, they also chose to Sybil the airdrop by allocating team addresses 1m+ marks each,” said Anon Vee, a crypto investor and trader on X.

The quick influx of liquidity is typical of airdrop farming, where short-term participants eager to qualify for the airdrop inject capital into the protocol. By temporarily boosting their holdings on the platform, these participants hoped to secure a share of Scroll’s SCR tokens ahead of the airdrop.

Implications of Airdrops For Project Liquidity

The Scroll team appears to have used the airdrop snapshot strategy to attract new users. They leveraged the excitement surrounding such events, as airdrops offer participants the potential to earn free tokens. While some view this as an opportunity to hold assets at the right time, others participate purely for the token distribution without long-term interest in the project.

One downside to this strategy is the dilution of rewards for loyal users. Airdrop farmers, who only add liquidity for a short period, can claim a large portion of the token distribution. This can frustrate long-term supporters who feel their contributions are undervalued.

This issue is not unique to Scroll. Airdrop farming has become common across the crypto space, with projects like Mode Network, Manta, and ZKSync experiencing similar spikes in total value locked before a snapshot, only for the numbers to drop after the farming period ends. This volatility affects project stability and can erode trust among users.

Read more: Best Upcoming Airdrops in 2024

As the trend grows, projects must find ways to design incentive structures that reward long-term commitment without being vulnerable to short-term speculators. The challenge for Scroll and others will be retaining users after the airdrop event ends.