ENS goes up after the airdrop, but be careful with that

In the crypto space, early adopters are often rewarded with huge profits. A similar moment has recently been observed with the Ethereum Name Service protocol, which simultaneously issues NFTs representing Ethereum addresses as well as web domains, and airdrop for new ENS tokens.

Airdrop is a method of token distribution that assigns a portion of the circulating tokens to Ethereum addresses that meet certain conditions, such as purchased NFTs. As one of the most popular uses on Ethereum to enjoy a bull run, the Airdrop hit a five-figure profit for many HODLers.

On November 10, the token on Binance gained more than 150% in an hour, while volume rose 120.33% and market capitalization+ passed the $ 1 billion mark. While everything sounds fine at the moment, there are still some red flags that cannot be ignored.

Red flag?

After the over $ 500 million airdrop, ENS saw increased social media volume and predictions. The price hike has resulted in an increase in network activity, mainly due to addresses that require ENS. However, “normal” address activity can be much lower than the numbers shown in the graph, just a few thousand.

Source: Santiment

However, the worrying trend is that dump attempts have impacted the ENS market, such as the sharp surge in deposits and inflows on 11/11.

Source: Santiment

Although the dump coincided with a local high and it was expected that the price could fall from there, it rebounded and even made a new ATH.

It’s also worth noting that in previous Airdrops, tokens like Adventure Gold (AGLD) soared on release and crashed after being listed on FTX, so traders need to be careful beforehand.

As far as ENS is concerned, the token is already listed on Binance, FTX and Crypto.com, while Coinbase would like to participate in ENS governance as a delegate.

Data from Dune Analytics shows that on November 10th, 137,689 addresses were eligible to claim the drop, of which 62,634 have completed the process and represent 49.72% of the available supply. According to CoinGecko, ENS has entered the top 200 tokens by market capitalization as well as the top 60 by 24-hour trading volume.

However, the ENS has been extremely volatile and the dump statistics paint a worrying picture. But the ENS airdrop is one of the biggest token drops of the year, second only to the dYdX airdrop. So can ENS provide the same service as dYdX? Time will tell, but caution is your best bet right now.

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Annie

According to Ambcrypto

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