Wormhole’s W Token Experiences a Rapid Descent
The emerging sectors of decentralized finance (DeFi) and cryptocurrency are no strangers to dramatic price fluctuations, and the native governance token of the cross-chain protocol Wormhole, the ‘W’ token, has found itself in a precarious plummet.
Debut Airdrop Euphoria to Market Realism
Within just days of a highly-anticipated airdrop event, which saw the initial value of the W token standing proudly at $1.66, the digital asset has since experienced a severe decline. The current trading price of W hovers around $0.82, marking a significant 50.6% decrease from its initial launch.
Although the most severe value erosion occurred steadily over the past week, it’s notable that the W token’s value dipped by a mere 4.5% over the last 24 hours, suggesting a potential stabilization following the initial shock.
The Broad Appeal of Wormhole’s Airdrop
When Wormhole announced its broad governance token airdrop last month, it garnered substantial attention within the DeFi community. Given Wormhole’s unique capability to bridge tokens among over 30 blockchain networks—including high-profile ecosystems like Ethereum, Solana, Avalanche, and Sui—the potential reach was vast.
In total, more than 400,000 unique wallets spanning Solana wallet and exchange Backpack, DeFi aggregator Jupiter, NFT owners (including those from Mad Lads, yoots, and DeGods), and active contributors in the Wormhole Discord were in the running for the free W tokens distribution.
Initial Fervour Gives Way to Market Corrections
As of the latest count, around 140,000 wallets have engaged in claiming W tokens. However, despite this early buzz, the market’s sentiment appears to have cooled, with the current market capitalisation of the W token receding to $1.47 billion.
A Long Road Ahead for W Token’s Circulation
While the market navigates the ongoing fluctuations, it’s important to note that the initial circulation of W tokens stands at 1.8 billion, with plans, as per the project roadmap, for the eventual supply to hit 10 billion tokens.
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