Challenges Faced by Doodles Token After Airdrop
The newly introduced DOOD token from the Ethereum-based NFT project Doodles has experienced a significant decline in market capitalization following its airdrop on the Solana network on May 9.
According to data from DEX Screener, DOOD’s market cap plunged from over $100 million shortly after its launch to around $60 million at the time of writing.
Overall, the much-anticipated airdrop was deemed “[d]efinitely underwhelming,” as noted by a crypto commentator in a post on X on May 9.
Related: Doodles NFT sales surge 97% ahead of DOOD token airdrop
Declining NFT Values
In line with this trend, the NFTs in Doodles’ flagship collection saw a sharp decline in value on May 9.
The collectibles fell by about 60%, dropping to less than 1.5 Ether (ETH) per NFT from around 3.5 ETH on May 8, according to OpenSea. As of May 9, the NFTs had a collective worth of approximately $31 million, according to CoinGecko.
NFT prices commonly decline right after an airdrop, as holders attempt to take advantage of their allocations by selling into the market. For example, Doodles’ NFT sales increased by about 97% on May 8, anticipating the airdrop.
In the past week, Doodles recorded approximately $2.6 million in total sales volume, an increase of more than 350% compared to the previous week, according to data from CryptoSlam.
Doodles announced its token launch back in February, revealing plans to mint 10 billion DOOD tokens on Solana (SOL) and eventually bridge them to Base, an Ethereum layer-2.
Doodles is the latest Ethereum-native NFT brand to release a token on the Solana network, following the success of Pudgy Penguins, an even larger NFT project that airdropped its PENGU token on Solana last December.
Similar to Doodles, Pudgy Penguins’ token dropped by about 50% on the day of its airdrop.
The PENGU token’s market cap reached an all-time high of nearly $2.8 billion but has since fallen to around $900 million, according to CoinGecko.
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