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What Caused ZKsync (ZK) Price to Decline 22% Following Airdrop?

Published

10 months ago

June 18, 2024

Coin2049 Newsletter

ZKsycn has been the highlight of the week owing to the launch of its native token, ZK. The airdrop recently concluded, and trading over the past 24 hours has not produced the expected result.

The overall skepticism surrounding the crypto market is also affecting ZK, as evident in the price drop.

ZKsync Losses the Upperhand

ZKsync’s ZK token launch was anticipated to be one of the biggest airdrops of 2024. Owing to multiple mega-bullish events such as Bitcoin halving, Spot Bitcoin, and Ethereum ETF approval, a positive outcome was expected.

However, the investors seem to have taken a different approach, moving to sell their holdings soon after trading began. According to Nansen’s ZK airdrop dashboard data, only 30% of all addresses have actually held on to all of their assets.

Of the remaining 70%, 41% have completely sold all of their airdropped ZK, while 29% have partially sold their holdings.

As of yet, the addresses have sold about 495.8 million ZK, worth over $109.6 million in terms of the token. Most of the investors have done this with the intention of booking profits.

This happening in small numbers is common in airdrops, but the broader market’s bearishness has resulted in other addresses selling to secure their gains.

Read More: What Is zkSync?

The crypto market’s volatility seems to be affecting the potential of these huge airdrops, as claimants’ first move is to sell for profit. This was observed in March 2023 as well during the Arbitrum native token ARB’s airdrop.

Following the airdrop, about 74% of the ARB coins successfully claimed were sold within days. This skepticism affected ARB’s price, as the altcoin, which opened trading at $10.29, fell to $1.3 in less than a week.

Thus, rising market volatility, as well as uncertain policies and attitudes surrounding crypto globally, seems to be the cause of investors’ bearishness.

ZK Price Prediction: Hit Taken, What’s Next?

The ZK price began trading on June 17, opening at $0.289. It did manage to rally slightly, hitting an all-time high of $0.309. However, the drawdown that began right after is still continuing, with ZK currently down by 22%.

Trading at $0.220 at the time of writing, ZK price is struggling to find any support to bounce back. This could take some time as the hype and concerns need to settle for the altcoin to witness normal trading.

However, a price decline is likely if claimants continue to sell and traders move to place bearish short contracts on the asset. How much lower that pulls ZK’s price is yet to be seen, potentially below $0.20.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Related Topics:Airdrop Caused Decline Price ZkSync

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Paul Atkins Confirmed as SEC Chair, Crypto Rules to Ease

Published

22 minutes ago

April 10, 2025

Coin2049 Newsletter

The US Senate has confirmed Paul Atkins as the new chair of the Securities and Exchange Commission. Senators approved the appointment on Wednesday with a 52-44 vote.

Atkins is expected to shift the agency’s approach to financial oversight. He plans to ease regulatory requirements, scale back corporate disclosure rules, and continue the commission’s new pro-crypto stance.

SEC Has a Pro-Crypto Chair

Since last week’s Senate hearing, there have been some doubts about Paul Atkins’ appointment. This was largely due to his significant crypto exposure as an investment leader.

However, the Senate has decided today with a tight vote.

The leadership change follows a period of major transition at the agency. Mark Uyeda, who served as acting chair after Gensler’s departure, launched a fast-paced overhaul of crypto policy.

“Confirmed, 52-44: Confirmation of Executive Calendar #61 Paul Atkins to be a Member of the Securities and Exchange Commission for the remainder of the term expiring June 5, 2026,” wrote the Senate Cloakroom.

Under Uyeda, the SEC dismissed several major enforcement actions tied to digital assets. The agency also declared that certain crypto sectors — including stablecoins, proof-of-work mining, and meme coins fall outside its jurisdiction.

Some of these areas have financial links to the Trump family. Their ventures include meme coin projects and connections to World Liberty Financial, a firm backing its own stablecoin.

Atkins is expected to formalize these regulatory shifts and oversee any new standards that may follow from pending legislation.

“Atkins may have made history tonight as the first SEC commissioner to get confirmed by the Senate three times. Once in 2002, then again in 2003, and now in 2025,” wrote Eleanor Terrett.

The SEC has already begun loosening several other rules. Uyeda delayed implementation deadlines for policies introduced during Gensler’s term.

He also revised rules on shareholder proposals, making it harder for activists to force issues onto corporate ballots.

The agency withdrew its defense of rules that required companies to disclose climate-related risks and emissions.

Atkins will take over a smaller agency. Around 500 staff have accepted voluntary resignations or buyouts. This has been part of the Trump administration’s broader effort to shrink federal agencies.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

XRP Primed for a Comeback as Key Technical Signal Hints at Explosive Move

Published

1 hour ago

April 10, 2025

Coin2049 Newsletter

XRP’s recent recovery has sparked fresh optimism among traders, but what’s happening behind the scenes tells an even more compelling story. This isn’t just a typical bounce; the charts reveal a calculated shift in momentum. Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are beginning to align, suggesting that XRP is approaching a crucial decision zone.

Following the recent downturn in the market, the price is now on a bullish recovery after testing the $1.7 key support level with increasing conviction. If the current momentum continues and resistance zones give way, XRP could be on the verge of a significant breakout. However, failure to build on this momentum could trap the token in another consolidation phase or a deeper retracement.

MACD Signals Brewing Bullish Pressure For XRP

In a recent post on X, crypto analyst Javon Marks pointed out that XRP’s MACD is approaching a critical breaking point, potentially signaling a shift in market momentum. He emphasized that this MACD indicator is showing signs of a bullish crossover, which could mark the start of a strong upward movement.

Coupled with this, Marks highlighted that XRP is currently holding a key Regular Bullish Divergence, where the price has been making lower lows while the MACD is showing higher lows. This indicates a weakening of bearish pressure, setting the stage for a potential reversal.

XRP

Marks suggested that this technical setup could be the catalyst for the bulls to take control, potentially leading to a powerful move that breaks through current resistance levels. With this convergence of bullish signals, XRP may be primed for a rally back toward the $3.30+ range, continuing its previous uptrend.

Key Levels to Watch: The Exact Breakout And Rejection Zones That Matter

In order to fully understand the future movements of XRP, it’s crucial to pinpoint the key levels that will either drive the price higher or cause a reversal. Firstly, the breakout zone for the altcoin lies around the $1.97 resistance level.

If the price manages to surpass this threshold with strong volume, it could trigger a surge towards higher levels, including $2.64 and $2.92. This breakout would likely confirm the upward momentum suggested by the MACD and the regular bullish divergence.

On the other hand, a rejection at the $1.97 resistance level might signal a lack of buying interest. Should the asst fail to break above this level, the price could pull back toward lower support levels like $1.7 or even $1.34. A failure to hold these support levels would trigger the potential for a more substantial downturn, with bears regaining control.

XRP

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SEC Approves Ethereum ETF Options Trading After Delays

Published

2 hours ago

April 9, 2025

Coin2049 Newsletter

After several delays, the SEC approved options trading on BlackRock’s iShares Ethereum ETF. This effort was initiated by Nasdaq last summer, and today was the Commission’s final deadline to confirm or reject it.

Ethereum’s price grew more than 14% today and this bullish development could help sustain these unrelated gains for the foreseeable future.

Ethereum ETF Gets Options Trading

Since the Ethereum ETF first won approval, it’s had a large impact on crypto markets. As the market has matured, several issuers have spent the last few months trying to get options trading approved as well.

After the SEC’s previous delay, the Commission had to make a firm decision by today’s deadline, and it decided to approve these options.

“The Commission is publishing this notice to solicit comments… from interested persons, and is approving the proposed rule change… on an accelerated basis,” the SEC’s release claimed.

Options are financial derivatives that grant the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before a specified expiration date.

In the context of the iShares Ethereum ETF, options trading enables investors to speculate on or hedge against the price fluctuations of BlackRock’s Ethereum Trust without directly transacting in the ETF itself.

Options trading can attract a broader range of investors. This includes institutional players seeking sophisticated instruments to manage risk and exposure in the crypto market.

Nasdaq filed this particular application in the summer of 2024, but it has faced a series of delays. Still, this formal approval aligns fairly well with the market’s expectations.

ethereum price chart — Ethereum Daily Price Chart. Source: BeInCrypto

The price of Ethereum hardly budged after this announcement. The announcement was largely overshadowed by Trump’s tariff pause, which caused gains of over 14%.

That isn’t to say that Ethereum ETF options trading is insignificant, of course. This approval will bring several key advantages to Ethereum, like institutional legitimacy, liquidity, and investor access.

Tariff fears recently pulled over $3 million from the altcoin’s spot ETF market. So, this development might encourage a bullish resurgence.

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