Altcoin
ZKsync Sees $500M Sell-Off in Tokens Post-Airdrop, Data Reveals
According to blockchain analytics firm Nansen, over 41% of the initial recipients of ZKsync’s recent airdrop sold their entire token allocations on the first day. This liquidation wave involved more than 4,160 wallet addresses, pushing nearly $500 million of the new ZK tokens into the open market. The ZK token, part of an Ethereum scaling solution by ZKsync, experienced a sharp price drop, trading at around 20 cents.
ZKsync Token Airdrop Triggers Major Market Sell-Off
The aftermath of ZKsync’s token airdrop saw a notable price decline, primarily driven by large-scale sell-offs. Nansen‘s data highlights that alongside the 41% who sold their complete allocations, approximately 30% of top recipients liquidated portions of their tokens. However, just under 29% have retained their tokens post-airdrop. The rapid sell-off reduced the token’s valuation, underscoring the volatile nature of cryptocurrency markets immediately following such distributions.
Moreover, the market reaction was compounded by issues related to Sybil attacks—exploits where individuals create multiple fake identities to receive a disproportionate amount of airdropped tokens. Although some protocols have implemented stringent measures to counteract Sybil attacks, ZKsync opted for a less restrictive filtering approach, which may have contributed to the flood of tokens hitting the market. Despite the evident market turbulence, ZKsync plans to distribute 3.67 billion tokens to over 695,232 addresses, of which the top 10,000 wallets constitute only 1.44% of the total allocation.
Market Reacts to ZKsync Token Influx
The strategy behind ZKsync’s airdrop raises questions about the effectiveness of governance token distribution and the ongoing challenges of Sybil’s attacks. While protocols like LayerZero have intensified efforts to mitigate such risks, ZKsync’s approach has faced criticism. Nansen reported that many Sybil addresses previously blacklisted by other airdrops managed to acquire significant amounts of ZK tokens, further complicating the distribution dynamics.
The impact of these distributions is not merely limited to market price fluctuations but also affects the broader governance and utility of the tokens. Analysts remain divided on whether Sybil farmers conducted the bulk of the sell-offs, but the influx of tokens into the market has undeniably influenced investor perceptions and confidence.
Despite the apparent market disruption, ZKsync developer Matter Labs appears unfazed mainly by the sell-off. CEO Alex Gluchowski suggested that more tokens in circulation could benefit genuine governance participants by increasing availability and market presence. This perspective highlights a fundamental tension between wide token distribution for decentralized governance and the market volatility it can introduce.
Also Read: Circle IPO: Stablecoin Giant Ramps Up Hiring Ahead Of Public Listing
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
One of the top Neiro Ethereum holders has surprisingly sparked bearish sentiments amid a bull market, heavily dumping the dog-themed meme token. Recent on-chain data pointed out that the 2nd largest holder of the token, Wintermute, took action to dump $3M worth of coins. This dump has raised substantial investor concerns, further solidified by the coin’s waning price movement amid a broader bull market.
Top Neiro Ethereum Holder Offloads Over 100M Coins
According to data by Arkham Intelligence, Wintermute deposited 35 million Neiro Ethereum tokens worth $3.08 million to Bybit over the past three days. Notably, the market maker remains the 2nd largest holder of the crypto, holding 10.9% of the total supply worth 108.95 million tokens.
Besides, it’s noteworthy that the same market maker totally withdrew 121.466M of the same token from Bybit before the abovementioned selloff to become the 2nd largest holder of this Shiba Inu dog breed-themed crypto. Nevertheless, despite the selloff weighing in, Wintermute is still the 2nd largest holder of the asset.
In light of this dynamic, market participants remain apprehensive as future selloffs by the top holder could negatively influence the renowned meme coin’s price movements. Meanwhile, despite a bullish sentiment over top meme coins, as witnessed by Dogecoin, Pepe coin, Bonk, and other tokens’ phenomenal gains, the Neiro Ethereum selloff has solidified market concerns.
Token Price Remains Volatile
At the time of reporting, NEIRO price traded near the flatline over the past 24 hours to rest at $0.079. The coin’s intraday low and high were $0.0753 and $0.08385, respectively. Notably, the weekly chart for the crypto showcased a 10% dip. This waning action has sparked severe market concerns in the wake of the abovementioned selloff.
However, a recent CoinGape Media report revealed that Neiro Ethereum has partnered with the market maker DWF Labs, adding investor intrigue on future price movements. Notably, another massive holder of the crypto is GSR Markets, a renowned market maker, holding 33.52 million tokens. Wintermute and GSR collectively hold 142.47 million tokens worth 14.25% of the total supply.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
A hidden Bullish Divergence pattern has just been identified on the Dogecoin price chart, signaling possibilities of a significant uptrend. With this new technical pattern, a crypto analyst has projected a target of $0.7 for the Dogecoin price.
Bullish Divergence Hint At Dogecoin Price Surge
On November 20, crypto analyst Trader Tardigrade on X (formerly Twitter) announced the appearance of a hidden bullish divergence on the Dogecoin 4-hour Relative Strength Index (RSI) chart. Based on this unique technical indicator, the analyst’s Dogecoin price analysis suggests that the meme coin may be gearing up for a significant rally to the upside.
Typically, an RSI hidden bullish divergence occurs when the price of a cryptocurrency forms higher lows while its RSI forms lower lows. This indicates that despite Dogecoin’s RSI showcasing declining momentum, its price is still maintaining strength, suggesting a higher potential for an uptrend continuation.
Recently, the Dogecoin price has been on a major bullish run, as it skyrocketed from above $0.1 to over $0.35 in just a few weeks. This impressive rally has allowed the popular meme coin to test the $0.4 resistance level, a critical threshold that could trigger a significant rally for the Dogecoin price.
Based on Trader Tardigrade’s Dogecoin chart, the RSI Hidden Bullish Divergence can be seen forming at around the $0.37 price level. The analyst has set a bullish target at $0.7 for Dogecoin, highlighting a steady but continuous growth from its current price if it can maintain positive momentum.
As of writing, the price of Dogecoin is trading at $0.38, marking a 165.19% surge over the past month, according to CoinMarketCap. Despite repeatedly failing to break the $0.4 threshold, Dogecoin could see an 84.2% price increase from its current value if the projected positive growth driven by the Hidden Bullish Divergence holds valid. This would effectively push the meme coin close to or even above it’s All-Time High (ATH) of $0.73 in May 2021 during the last bull market.
DOGE Targets New ATH
In another X post, crypto analyst, Steph, has maintained an optimistic outlook on the Dogecoin price. According to Steph, Dogecoin could be gearing up for a new ATH this bull cycle.
The analyst shared a 2-year Dogecoin price chart, pinpointing a bullish target between $1.4 and $1.8 for the meme coin. Following the target’s position on the Dogecoin chart, the analyst suggests that this ATH rally could either take place before the end of 2024 or in 2025.
Based on current market trends, this massive price surge to a new ATH could be potentially driven by Elon Musk’s influence through his newly proposed organization, the Department of Government Efficiency (D.O.G.E). Additionally, Donald Trump’s upcoming inauguration as the 47th United States (US) President could also serve as a strong catalyst that could propel the Dogecoin price higher.
XRP price shot up 26% in hours as the US SEC Chair Gary Gensler announced his resignation. Ripple’s native token XRP hit a high of $1.43, the levels last seen during the 2021 bull run. Crypto market analyst predicts the continuation of the rally all the way to $2 following a bullish pattern breakout. The news of pro-crypto Paul Atkins replacing Gensler as SEC Chair could fuel the XRP rally further.
XRP Price Rally to $2 Coming?
Following the resignation announcement by SEC Chair Gary Gensler, the XRP bulls have charged in leading to another 26% price rally. Gensler’s last day at the office will be January 20, 2025, the same day when President-elect Donald Trump takes charge at the White House. It is clear that the XRP community sees Gensler’s resignation as positive, following the tough four-year legal battle in the Ripple lawsuit.
Crypto market analyst Ali Martinez believes that this rally will continue to $2. Martinez suggested that Gensler leaving the SEC would mark a significant turning point for Ripple, potentially easing regulatory pressures on the company.
“Gary Gensler leaving the SEC is the best thing that could happen to Ripple,” Martinez stated. He further added that XRP price could now set its sights on a $2 target, amid the fresh breakout from the flag-and-pole pattern.
Crypto analyst CrediBULL Crypto highlighted that XRP’s monthly Relative Strength Index (RSI) is on the verge of entering overbought territory for the first time in three years. “XRP/ETH just reclaimed and retested a 4 year long range, with the first target being ~250% higher,” he added.
Paul Atkins to Replace US SEC Chair Gary Gensler?
As Gary Gensler puts his resignation, the biggest question in everyone’s mind is whom will Donald Trump appoint as the next SEC Chair? Fox Business reported that former SEC Commissioner Paul Atkins is the front-runner to succeed Gary Gensler.
Paul Atkins is popular for his free-market regulatory approach and pro-crypto stance. He has also garnered strong support from the business community and the digital asset industry. His appointment could also open the gates for the spot XRP ETF by 2025.
21Shares, Canary Capital, and Bitwise have already filed with the US SEC for the XRP ETF in the last two months. The arrival of this investment product could fuel institutional interest in XRP.
Gary Gensler’s decision not to complete his term at the SEC has been met with widespread approval from the business sector, which has been critical of his regulatory approach. The narrative towards the end of Ripple vs SEC lawsuit now looked more obvious.
As of press time, the XRP price is trading 26% up at $1.40 with a market cap of $80 billion. As per the Coinglass data, the open interest in XRP has shot up 35% to $2.47 billion. In the last 24 hours, $25.64 million worth of XRP positions were liquidated with $14 million in short liquidations and $11.62 million in long liquidations.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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