CandleFocus

Scroll Airdrop Farming Unwinds With $170 Million TVL Drop

Author: Content Editor
Scroll, an Ethereum Layer-2 (L2) network, has seen a significant drop in its total value locked (TVL) of $170 million since its peak on October 16, 2024. The rise and fall of Scroll's TVL is reflective of a broader trend in the crypto space, where short-term incentives like airdrops can drive rapid growth in TVL but may not lead to lasting user engagement. Scroll's TVL surged ahead of its snapshot on October 19, which was part of the protocol's strategy to distribute its native SCR tokens through an airdrop. However, the spike in TVL was short-lived, and it has been dropping since. This decline highlights a common issue with airdrop farming, where liquidity surges temporarily but fails to lead to long-term user engagement or value retention. Projects like Scroll must find ways to design incentive structures that reward long-term commitment and retain users after the airdrop event ends.

Related News