The recent launch of the DOOD token by the Ethereum-based NFT project Doodles has taken a significant downturn in market capitalization after its airdrop on the Solana network on May 9. Initially, the market cap soared past $100 million; however, it has since plummeted to approximately $60 million, according to data gathered from DEX Screener.
This underwhelming response to the highly anticipated airdrop was echoed by industry commentators who expressed disappointment with the token’s performance. One prominent crypto commentator described the event as ‘[d]efinitely underwhelming,’ reflecting a sentiment that has rippled through the community.
The fallout extended into the NFT sector, particularly impacting Doodles’ flagship collection, which has seen a drastic price reduction. On May 9, the value of these NFTs dropped by approximately 60%, falling to below 1.5 Ether (ETH) from about 3.5 ETH the previous day. According to OpenSea data, the entire collection’s market value has dwindled to around $31 million.
It is not uncommon for NFT prices to dip after an airdrop, as holders often seek to liquidate their allocations. In a notable pre-airdrop surge, sales of Doodles’ NFTs climbed about 97% on May 8, reflecting significant interest prior to the event.
Over the past week, Doodles has registered a total sales volume of around $2.6 million, a remarkable increase of more than 350% in comparison to the previous week, according to reports from CryptoSlam. The anticipation surrounding the token’s launch was already building as Doodles announced plans in February to mint 10 billion DOOD tokens on the Solana blockchain, with intentions to bridge them to Base in the Ethereum layer-2 ecosystem.
Interestingly, Doodles is not the only NFT project venturing into the Solana space. It follows in the footsteps of Pudgy Penguins, a larger NFT initiative, which launched its PENGU token on the Solana network in December. The PENGU token experienced a similar trajectory, dropping about 50% following its airdrop.
As the NFT and crypto markets continue to evolve, the response to projects like Doodles and their token launches will be crucial to watch, particularly as investors gauge sentiment in an increasingly volatile landscape.
For more insights into Doodles and the broader NFT market, stay tuned for our upcoming articles.
