CoinGecko Identifies Optimal Timing for Selling Airdrop Tokens

According to a study by CoinGecko, 23 out of 50 projects (46%) that conducted major airdrops saw token price peaks within the first two weeks post-release. 

“This suggests that the best time to sell airdrop tokens is within the 14-day period from receipt,” the report states. 

Among the coins that achieved maximum short-term returns:  

• Ethereum Name Service — +73% by the second day of trading; 
• X2Y2 — +121% by the second day;
• Blur — +90% by the second day; 
• LooksRare — +192% by the 10th day; 
• ArbDoge AI — +425% by the 14th day.

Recent distributions highlighted by analysts include Jito (+43% by the second day), Wen (37% by the third day), Dymension (+75% by the 10th day), Manta (+72% by the 12th day), and Heroes of Mavia (+217% by the 13th day). 

“In other words, interest in tokens typically spikes immediately after the airdrop and the start of trading. This confirms that token distribution is an effective marketing or development tactic,” CoinGecko added. 

For seven of the projects studied, the peak was reached on the first day of trading. For instance, the token of the DEX aggregator based on Solana — Jupiter — started at $0.66 and then fell by 28%. 

Conversely, 27 of the 50 largest airdrop tokens reached their ATH more than two weeks after launch — ranging from 15 to 581 days. 

Market Influence

CoinGecko observed that market conditions directly affect the price growth of airdropped tokens. Nineteen out of 50 (38%) coins peaked in 2021 amid a bull market. 

Of these, four peaked more than 100 days after the airdrop: Uniswap (+1145%), 1inch (+216%), Gitcoin (+242%), and Bank (+94%).

“For some airdrops, recipients might consider holding their tokens to accumulate value over a longer period to achieve higher returns in favorable market conditions,” researchers noted. 

During the bear cycle of 2022, only 11 out of 50 released tokens peaked shortly after distribution. CoinGecko suggests that in such a market phase, it is better to sell the coins immediately.

With the return of bullish sentiment in 2023 and 2024, 21 out of 50 tokens peaked. Eight of these recorded ATHs more than 100 days after the airdrop. 

For five tokens, the time to peak ranged from 15 to 100 days. The remaining eight reached their highest point within 14 days. 

On February 20, 2024, StarkNet unlocked 728 million STRK (7.3% of the emission) for over 1.3 million wallets as part of an airdrop. 

On the same day, the Ethereum layer-two network Optimism distributed 10.3 million OP tokens (~$39.2 million) among 22,998 unique addresses.