Large Airdrops Could Fuel Next Crypto Bull Run? Major Candidates Emerge

Analysis suggests that major airdrops could spur initial capital inflows in the next cryptocurrency bull market. With liquidity thinning during the late bear market phase, tokens directly distributed to users may flow back into the market as buying power.

Blockchain media The Defiant analyzed cases including Uniswap, Gitto, and Hyperliquid, noting that large airdrops can supply new liquidity to the crypto ecosystem. A key example is Uniswap, which distributed approximately $450 million worth of UNI tokens to users in September 2020. Over the following 14 months, total cryptocurrency market capitalization rose from around $350 billion to $3 trillion, while DeFi total value locked grew from $10 billion to nearly $180 billion. However, this bull run coincided with multiple factors including pandemic-era monetary easing and DeFi market growth.

The effect of airdrops becomes visible when distributed tokens circulate back into the market. While some recipients sell their tokens, others hold or reinvest in the ecosystem for further rewards, potentially introducing new capital to on-chain markets.

Gitto and Hyperliquid were cited as similar cases. After Gitto's JTO airdrop in December 2023, funds returned to the Solana ecosystem. In November 2024, Hyperliquid distributed 31% of its total HYPE supply to early users, with relatively low venture capital holdings and fee-based buybacks supporting downside demand.

Current market conditions also explain why this analysis is gaining attention. Bitcoin rose to $126,210 in October 2023 before falling to around $60,000 by early February 2024—a decline of about 52%. It has recently traded near $76,000. Market opinions are divided on whether the final bottom has been reached or if the February low was already passed.

Potential major airdrop candidates include Polymarket, Coinbase's Base, and decentralized derivatives exchanges with possible token launches. Polymarket confirmed plans for POLY token issuance but may prioritize an IPO following ICE's large investment. Base is also considering token issuance without a set schedule. Circle's ARC is another possibility despite no current airdrop plan, as 60% of its allocation is reserved for ecosystem use.

However, whether major airdrops will actually act as catalysts for the bull run remains uncertain. If prominent projects delay token distribution or choose other paths like IPOs, effects may be limited. Conversely, if market recovery aligns with large airdrops, user-distributed funds could reintegrate into on-chain ecosystems and boost early liquidity in the bull run.