The DOOD token, a new cryptocurrency launched by the Ethereum-based NFT project Doodles, experienced a significant decrease in market capitalization after its May 9 airdrop on the Solana network. Data from DEX Screener revealed that DOOD's market cap dropped from over $100 million shortly after its launch to approximately $60 million at the time of reporting.

The response to the much-anticipated airdrop was described as "underwhelming" by a crypto commentator in a May 9 X post. Additionally, the NFTs in Doodle's flagship collection also saw a sharp decline in value on May 9. The collectibles plummeted by around 60%, with their value dropping to less than 1.5 Ether (ETH) per NFT from about 3.5 ETH on May 8, as reported by OpenSea. As of May 9, the NFTs were collectively valued at around $31 million, according to CoinGecko.

It is common for NFT prices to decrease immediately following an airdrop as holders often sell their allocations in the market. Sales of Doodles' NFTs surged by 97% on May 8 in anticipation of the airdrop. Over the past week, Doodles recorded approximately $2.6 million in total sales volume, marking an increase of more than 350% from the previous week, according to data from CryptoSlam.

Doodles had announced the launch of its token in February, with plans to mint 10 billion DOOD tokens on Solana (SOL) and eventually bridge them to Base, an Ethereum layer-2 solution. Doodles is the latest Ethereum-native NFT brand to introduce a token on the Solana network, following in the footsteps of Pudgy Penguins, a larger NFT project that airdropped its PENGU token on Solana in December.

Similarly to Doodles, Pudgy Penguin's token also experienced a drop of around 50% on the day of its airdrop. The PENGU token's market cap hit an all-time high of approximately $2.8 billion before declining to about $900 million, according to CoinGecko.

In the rapidly evolving landscape of NFTs and cryptocurrency, market fluctuations following events such as airdrops are not uncommon. Investors and enthusiasts will be closely monitoring the performance of DOOD and other tokens in the coming days to gauge their long-term viability and potential for growth

Source: https://cointelegraph.com/news/doodles-nft-token-stalls-after-airdrop?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound