The highly anticipated ARKM airdrop on the Arkham Intelligence platform has seen a significant drop in on-chain activity. CryptoQuant data indicates a staggering 99% decrease in active addresses as of July 30, resulting in a substantial 98% decline in transaction volumes. This blog post examines the details surrounding the ARKM airdrop and its subsequent impact on the project.

Taking place less than two weeks ago, the ARKM airdrop generated substantial buzz among early supporters of the Arkham Intelligence platform. The initiative was aimed at incentivizing these early backers by distributing ARKM tokens, the native utility and governance token of Arkham Intelligence. As an analytics platform, Arkham Intelligence offers diverse functionalities, including facilitating crypto intelligence data trading, voting on development proposals, and distributing rewards.

To qualify for the airdrop, users had to be part of the Arkham Private Beta waitlist or have participated in the Arkham Bounty Program. The number of tokens allocated to each user during the airdrop was determined based on their activity on the Arkham platform. Notably, CryptoQuant’s on-chain data reveals that approximately 63,700 addresses received ARKM tokens during the airdrop.

Despite the initial excitement surrounding the airdrop, the subsequent decline in on-chain activity raises concerns. Most of the airdrop beneficiaries, 95% to be precise, decided to sell their tokens, with a staggering 80% liquidating their entire holdings. Out of the 28.9 million ARKM tokens distributed, an astonishing 97% were sold, with 80% converted to cash or other liquid cryptocurrencies. Notably, one wallet holder, known as “0xf0,” sold their 24,900 ARKM tokens for at least 83 ETH.

Unsurprisingly, the massive liquidations and subsequent sell-offs post-airdrop led to a decline in ARKM prices. At present, the token is trading at $0.553, a notable depreciation from its initial value. These developments have resulted in the project’s market capitalization standing at approximately $83 million, considering a circulating supply of 150 million tokens as of July 30. Furthermore, according to CryptoQuant data, only 47 active addresses were responsible for moving 3.6 million tokens as of July 27, indicating a significant reduction from the 50,500 active addresses recorded on July 18.

In light of the sharp decline in on-chain activity following the ARKM airdrop, Arkham Intelligence needs to reassess its strategy to revive user engagement and rebuild the token’s value. With the majority of airdrop beneficiaries opting to liquidate their holdings, efforts will be required to drive adoption and foster long-term community involvement. As the platform moves forward, it will be intriguing to observe the steps taken by Arkham Intelligence to combat current challenges and establish a thriving ecosystem around the ARKM token.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.