ZKSync airdrop cannot save the declining active users, as 40% of wallet holders have already sold off all ZK tokens.

According to The Block report, ZKSync Era, which announced its airdrop last week, has seen a significant decline in active addresses and transaction volume since February this year, indicating that the potential or already occurred airdrop event may not have had a significant impact. Blockchain data analysis company Nansen also stated that 40% of the airdropped tokens have already been sold off by the recipients.

ZKSync Announces Airdrop

On June 11th, ZKSync, as the first zkEVM mainnet, finally conducted the highly anticipated ZK token airdrop, distributing approximately 3.6 billion tokens to over 695,000 eligible addresses.

It is reported that the amount of tokens airdropped will be influenced by factors such as trading activity on ZKsync, asset activity in the ZKsync Era, and the duration assets are held.

ZKsync Releases Airdrop Checker: 17.5% of ZK Tokens Airdropped to 695,232 Wallets

ZKSync Era Active Addresses Continue to Decrease

However, data from The Block shows that the number of active addresses and transaction volume on ZKSync Era reached a historical peak around the end of February and has since been declining, decreasing by about 44%, reflecting a significant decrease in network activity.

While the decline in ZKSync Era is slower compared to its ZK rollup competitor Linea, ZKSync Era even gave Linea a chance to overtake it at the end of March.

Although Linea had taken the lead twice before, its data performance is currently behind ZKSync Era; Linea is attempting to compete for the dominant position in ZK rollups through a six-month incentive program called "Linea Surge."

The Block stated that large-scale anticipated token airdrops or distribution events often have an impact on platform activity, user numbers, and token prices.

Nansen: 40% of Airdropped Wallets Have Sold All ZK Tokens

Additionally, blockchain data company Nansen pointed out that nearly half of the top 10,000 wallets that received the airdrop have completely sold their allocated ZK tokens, leading to a 34.5% decrease in ZK token price since its launch.

Statistics show that about 40% of addresses have sold all their ZK tokens, 34.5% have sold some tokens, and only around 25.6% of wallets continue to hold all the tokens:

The total amount of ZK sold exceeds 517 million tokens.

It is reported that ZKSync has been criticized for its overly loose or inconsistent airdrop standards, leading to massive sell-offs by large wallets.

The ZK Controversy at Matter Labs

As an innovative cryptographic technology, Zero Knowledge (ZK) aims to ensure the integrity, reliability, and zero-knowledge nature of information, allowing the prover to verify to the verifier the truth of possessing specific information, making it popular in digital identity verification and privacy protection protocols.

Previously, ZK development company Matter Labs faced backlash and backlash from other ZK technology application operators last month for submitting its token name "ZK" for trademark registration in nine countries; subsequently, possibly under public pressure, they announced the withdrawal of all trademark applications related to the "ZK" name.

"Whose 'ZK' Is It Anyway? Zksync's Trademark Registration Sparks Backlash from Strakware and Others: This Is a Public Good"