Scroll Airdrop Causes $170M Decline in TVL: What Happened?
Scroll, a Layer-2 Ethereum network, has seen a sharp drop in its Total Value Locked (TVL), losing $170 million since its peak on October 16, 2024. The TVL surged significantly before the airdrop snapshot for Scroll’s native SCR tokens, scheduled for October 19. According to DeFi analytics platform DefiLlama, Scroll’s TVL jumped from $838.05 million to $995.75 million between October 9 and October 16—a nearly 20% increase.
However, the TVL has since dropped to $824.82 million, showcasing the volatility that can accompany airdrop farming in the crypto space. While airdrops may temporarily increase liquidity as users try to qualify for token rewards, they often fail to foster long-term user retention. Once the airdrop incentives end, participants frequently withdraw their funds, leading to a significant decline in TVL.
Discontent Grows Over Scroll Airdrop Strategy
Despite the excitement leading up to the Scroll airdrop, some users have voiced dissatisfaction, especially within the Binance community. Many claim that a large portion of the rewards was unfairly allocated to insiders. Crypto trader Anon Vee expressed frustration over the team retaining 23% of the token supply and distributing large amounts to team addresses, commenting, “Scroll team is so greedy!”
This dissatisfaction highlights a broader issue with airdrop farming: it attracts short-term capital, but those users often withdraw once the rewards are distributed, leaving a diminished TVL. For long-term supporters, this strategy can feel unfair as the influx of new users dilutes their rewards.
Although the Scroll airdrop aimed to generate excitement and attract new users, the backlash from loyal participants suggests it may have backfired, alienating the community it intended to reward.
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