Scroll Airdrop Cause $170M Drop In Total Value Locked: Here’s Why

Scroll Airdrop: A Fast Rise and Fall of $170M in Total Value Locked

Scroll, an Ethereum Layer-2 network, has experienced a dramatic decline in its total value locked (TVL), shedding $170 million since reaching its peak on October 16, 2024. 

The TVL rose sharply ahead of a highly anticipated airdrop snapshot scheduled for October 19, designed to distribute its native SCR tokens. 

According to data from DeFi analytics platform DefiLlama, Scroll’s TVL skyrocketed from $838.05 million to $995.75 million between October 9 and October 16—a remarkable increase of nearly 20%. 

However, this surge proved to be short-lived, with the TVL dropping to $824.82 million as of now.

The swift rise and fall of Scroll's TVL highlight a broader trend in the crypto space. While airdrop farming can temporarily boost liquidity as users rush to qualify for token rewards, it often fails to encourage long-term user engagement. 

As a result, once the incentive dissipates, many participants withdraw their funds, leading to a significant decrease in TVL.

User Dissatisfaction Amid Scroll Airdrop Strategy

Despite the excitement surrounding the upcoming airdrop, some users are expressing dissatisfaction. Many believe that the Scroll team unfairly allocated a large portion of the airdrop rewards to insiders. 

One crypto trader, known as Anon Vee, voiced frustration over the team retaining 23% of the token supply and distributing large amounts of tokens to team addresses, saying, “Scroll team is so greedy!”

The influx of liquidity typical of airdrop farming is characterized by short-term participants adding capital to qualify for airdrops. These users often withdraw their investments soon after, leaving behind a diminishing TVL and potentially alienating long-term supporters. 

While the airdrop strategy aims to attract new users and generate excitement, it can dilute rewards for loyal participants, who may feel undervalued in the distribution process.

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A Need for Sustainable Incentive Structures

The challenges faced by Scroll crypto are not isolated; many projects in the crypto space have seen similar patterns, including Mode Network, Manta, and ZKSync, which experienced TVL spikes before airdrops, only to see those numbers plummet shortly thereafter. 

As airdrop farming continues to rise in popularity, the need for projects to develop sustainable incentive structures that reward long-term engagement becomes increasingly crucial. For Scroll and other platforms, retaining users beyond the airdrop event is essential for building trust and ensuring stability in the DeFi ecosystem.

Read More: Scroll Airdrop and $SCR Allocation Checker Live: Check details now