Out of the largest airdrops, nearly half of them, 46% to be exact, showcased their highest token prices within just two weeks from their airdrop starting date. This implies that the most opportune moment to sell airdrop tokens might be within a fortnight of reception to optimize profits. Tokens from airdrops saw their peak returns shortly after launch, such as Ethereum Name Service (+73% by day 2), X2Y2 (121% by day 2), Blur (+90% by day 6), LooksRare (+192% by day 10), and ArbDoge AI (425% by day 14).

Newer airdrops like Jito (+43% by day 2), Wen (37% by day 3), Dymension (+75% by day 10), Manta (+72% by day 12), and Heroes of Mavia (+217% by day 13) were also lucrative for beneficiaries if they sold promptly after receiving the airdrop. However, the sustainability of these price surges remains uncertain as these tokens have just entered the market. The key pattern observed is that tokens generally spike in interest post-airdrop, underlining the effectiveness of token airdrops as a growth strategy, which stirs up discussions and boosts token prices shortly after distribution.

It was noted that 16 out of the 23 tokens hit their peak gains between the 2nd and 14th day after being airdropped, showing that tokens gain significant interest right after the airdrop date. Conversely, the remaining 7 tokens reached their peak values on the day of the airdrop itself, illustrating a rush from recipients to cash in their profits immediately, resulting in a subsequent drop in token prices. The extended growth periods for certain airdrop tokens suggest that favorable market trends and project development play crucial roles in driving token valuations beyond their initial levels.

Market Conditions Influence Airdrop Returns
38% of Airdrop Tokens Reached Peak During 2021 Bull Market
19 tokens from the major airdrops hit all-time highs in 2021, reflecting the influence of market conditions on the upward trajectory of these tokens. Notably, tokens like Uniswap, 1inch, Gitcoin, and Bank experienced substantial returns compared to their short-term values, indicating that holding onto airdrop allocations for a longer duration during bullish market phases could lead to higher profits.

2022: NFT Airdrops Have a Good Run
Around 11 airdrop tokens attained their all-time highs in 2022 despite unfavorable market conditions, hinting at a spike in NFT valuation. This contrasted with tokens launched earlier that year, like Osmosis, that gained peak values shortly after being airdropped. The data implies that during a market downturn, it is beneficial to sell airdrop tokens promptly to maximize gains.

2023 & 2024: Reviving Optimism?
In the following years, 21 airdrop tokens peaked, signaling a resurgence in bullish sentiment consequent to the approval of spot Bitcoin ETFs in the US. Among these, a few tokens experienced peak values well after their airdrop, pointing towards lingering potential in holding onto airdrop allocations for an extended period in anticipation of a bullish market.

These analyses were based on data sourced from January 1, 2020, to February 20, 2024, with price information gathered from CoinGecko. It is essential to conduct independent research before investing in any airdrop tokens or financial assets, as this study is meant for informational purposes and not as financial advice.