Scroll, an Ethereum Layer-2 network, has experienced a dramatic decline in its total value locked (TVL), shedding $170 million since reaching its peak on October 16, 2024.
The TVL rose sharply ahead of a highly anticipated airdrop snapshot scheduled for October 19, designed to distribute its native SCR tokens.
According to data from DeFi analytics platform DefiLlama, Scroll’s TVL skyrocketed from $838.05 million to $995.75 million between October 9 and October 16—a remarkable increase of nearly 20%.
However, this surge proved to be short-lived, with the TVL dropping to $824.82 million as of now.
The swift rise and fall of Scroll's TVL highlight a broader trend in the crypto space. While airdrop farming can temporarily boost liquidity as users rush to qualify for token rewards, it often fails to encourage long-term user engagement.
As a result, once the incentive dissipates, many participants withdraw their funds, leading to a significant decrease in TVL.
User Dissatisfaction Amid Scroll Airdrop Strategy
Despite the excitement surrounding the upcoming airdrop, some users are expressing dissatisfaction. Many believe that the Scroll team unfairly allocated a large portion of the airdrop rewards to insiders.
One crypto trader, known as Anon Vee, voiced frustration over the team retaining 23% of the token supply and distributing large amounts of tokens to team addresses, saying, “Scroll team is so greedy!”
The influx of liquidity typical of airdrop farming is characterized by short-term participants adding capital to qualify for airdrops. These users often withdraw their investments soon after, leaving behind a diminishing TVL and potentially alienating long-term supporters.
While the airdrop strategy aims to attract new users and generate excitement, it can dilute rewards for loyal participants, who may feel undervalued in the distribution process.
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