Following the highly anticipated announcement and subsequent airdrop of ZK tokens by zkSync, Nansen data reveals that nearly half of the wallets that received the funds have already sold their entire allocation.

This significant selloff caused the ZK token to plummet, losing over 30% of its value in under 24 hours.

Massive Selloff of ZK Tokens

After the distribution of the zkSync token (ZK) began yesterday, data from the analytics platform Nansen indicates that nearly 41% of the addresses that claimed the allocation have already sold all of them. Some addresses, which received substantial amounts of up to 2.4 million tokens, have completely liquidated their allocation.

Nansen data further reveals that approximately 29.8% of the addresses sold a portion of their tokens. Among the top 10 wallets, three sold small amounts, five retained their entire allocation, and two liquidated 100% of their holdings. Since Monday, over 491 million ZK tokens have been sold following their distribution.

However, the data only encompassed the top 10,000 wallets, representing approximately 1.4% of the addresses that received the airdrops.

Last week, zkSync announced that close to 695,000 wallets would receive about 3.75 billion tokens in the airdrop. According to data by Matter Labs expert Landon Gingerich, 491,000 wallets have claimed their share of the airdrop since the reports publication.

In the first 2 hours after the claim period opened, 45% of the total airdrop allocation was claimed, according to an X post from zkSync Association, a non-profit unveiled by Matter Labs last week. These massive claims led to a significant network issue for zkSync.

The zkSync team tweeted about the network being under high load, potentially causing degraded performance for some RPC services.

Massive Drop in ZK Token Price

Due to widespread selling, Coingecko data shows that the ZK token has depreciated by more than 30% since its inception. Upon listing, it peaked at $0.30 but subsequently fell to approximately $0.20.

At the time of writing, the ZK token is trading at $0.22, marking a 25% decline over the past 24 hours. With a market capitalization of $825 million, ZK ranks among the top 100 tokens based on total valuation.

Amidst the price drop and the ongoing token distribution, there have been complaints that the zkSync team did not effectively deal with Sybill wallets, as many dodgy wallets qualified for the airdrop.