What Happened To ARKM? On-Chain Activity Plummets 99% In Less Than 2 Weeks
CryptoQuant data shows a significant drop in on-chain activity for ARKM, the native token of the Arkham Intelligence platform, after its recent airdrop. Active addresses have decreased by 99% as of July 30, resulting in a 98% decline in transaction volumes.
The ARKM Airdrop: Details
The rapid decline in on-chain activity is less than two weeks after the highly publicized Arkham Intelligence’s airdrop from July 18. The airdrop was meant to incentivize early supporters of Arkham Intelligence, with eligible users receiving ARKM tokens. Arkham Intelligence is a blockchain analytics platform.
Arkham Intelligence said ARKM is a utility and governance token serving multiple functions, including facilitating trading of crypto intelligence data, voting on important development proposals, and distributing rewards. The token was minted compliant with the ERC-20 standard on Ethereum, meaning it could be transferred to exchanges and external addresses.
To qualify for the airdrop, users must have been on the Arkham Private Beta waitlist or participated in the Arkham Bounty Program. The number of tokens allocated to each user during the airdrop was based on their activity on the Arkham platform. At the end of the airdrop, on-chain data compiled by CryptoQuant reveals that 63,700 addresses received ARKM.
Most Holders Sold, Active Addresses Down 99%
The objective of the airdrop was to raise awareness about Arkham and expand its user base. Most of those who qualified for the airdrop received less than 200 ARKM. Only five addresses received more than 100,000 ARKM.
Looking at what transpired after the airdrop, Arkham may have to double down to revive activity. Data shows that out of the 63.7K wallets that received the airdrop, 95% chose to sell their tokens, with 80% of recipients liquidating their entire holdings.
Extrapolating from CryptoQuant data, this means 97% of the 28.9 million airdropped were sold, with 80% of those tokens entirely liquidated for cash or other liquid cryptocurrencies. One wallet holder, “0xf0,” who received 24,900 ARKM, sold all for at least 83 ETH.
After the airdrop and with further headwinds due to massive liquidations, ARKM prices fell, and the token is now trading at $0.553. As of July 30, the project’s market capitalization is approximately $83 million from a circulating supply of 150 million tokens. CryptoQuant data also reveals that 47 active addresses, down from 50,500 on July 18, were responsible for moving 3.6 million tokens as of July 27.
Feature image from Canva, chart from TradingView
