- Mode commenced its airdrop on the 7th of May.
- It has declined significantly after its airdrop.
Mode [MODE] transitioned into “Airdrop mode” on the 7th of May, distributing millions of its tokens to eligible users.
Leading up to the airdrop, the Total Value Locked (TVL) of the network experienced a significant surge, and its trading volume also witnessed a spike on the day of the airdrop.
However, following the token release, the value of the MODE token experienced a decline.
Mode crypto commences airdrop
On the 7th of May, Mode initiated an airdrop program, distributing 550 million of its tokens to eligible users.
The distribution is determined by the Mode points held by users, which are earned through their engagement with various DeFi applications, NFTs, and other Layer 2 networks.
This allocation of 550 million tokens accounts for 5.5% of the total token supply, which amounts to 10 billion tokens.
Additionally, as outlined in the tokenomics provided by the team, investors and core contributors are slated to receive 38% of the total token supply.
The foundation treasury will hold 27%, while the remaining 35% of the supply is allocated for community and developer airdrops.
TVL takes off
Analysis of the Mode Total Value Locked (TVL) on DefiLlama revealed a significant uptrend starting from February.
The project garnered attention in January after receiving a grant of 2 million OP tokens, equivalent to around $5.4 million, from the Optimism Foundation to aid its development.
Built using the OP Stack, Mode is an integral part of the Optimism Superchain ecosystem.
Source: DefiLlama
The TVL chart displayed a consistent increase since February, experiencing a notable spike beginning on 1st May. By the 5th of May, the TVL had surpassed $500 million.
However, there was a subsequent decline, with the TVL dropping to around $477 million at the time of analysis.
Despite this drop, the project’s volume witnessed its second-highest surge in history on the 7th of May, reaching almost $24 million on the day the airdrop commenced.
Although there was a recent dip in TVL, data from L2 Beats indicated that Mode still held one of the largest TVLs among Layer 2 networks.
According to L2 Beats data, Mode ranked as the tenth largest in terms of TVL, representing over 1.4% of the entire L2 market cap.
Post airdop
AMBCrypto’s analysis of Mode indicated a substantial drop following its airdrop event. Initially priced at $0.1, it declined to around $0.055 by the end of the 7th of May.
At press time, it was trading at around $0.048, reflecting an over 11% decline.