Arkham (ARKM) network activity suffers after much-hyped airdrop

Key Takeaways:

• Arkham Intelligence dropped the ARKM token on July 18
• Following its launch, the token price rallied to reach $0.82
• However, the hype has subsided, and traders are ditching the project

YEREVAN (CoinChapter.com) — Earlier this month, prominent cryptocurrency exchange Binance (BNB) announced its 32nd project on Binance Launchpad called Arkham (ARKM). The ARKM token airdrop took place on July 18, allowing over 60,000 participants to claim the altcoin.

Once the public sale opened, one ARKM token went for $0.05. However, the altcoin witnessed a surge of hype and attention in the market, causing its price to skyrocket to $0.82 on the first day of trading.

However, recent data from CryptoQuant reveals a concerning decline in on-chain activity since the airdrop occurred. 

The on-chain activity of ARKM tanks

The latest figures from the data analytics firm paint a grim picture for the project. According to its latest report, the number of active addresses holding ARKM tokens has plummeted by a staggering 99%. Just ten days back, over 50,000 active addresses were holding ARKM tokens. 

However, this number had plummeted to just 47 at the time of writing. 

This indicates a significant loss of interest and engagement within the community. 

The complete data above also reveals that the transaction volume has decreased by 98%. The drop from over 142 million to less than 4 million reflects a lack of token movement and trading activity.

One of the key factors contributing to this downturn is the mass exodus of airdrop recipients.

Out of the 63.7,000 wallets that initially received the airdrop, 95% chose to sell their tokens. Of these, 80% sold all their tokens, with just 15% retaining a small amount. 

Further analysis of the airdropped tokens’ fate paints an even bleaker picture. Holders sold off 97% of the 28.9 million airdropped tokens, with 80% being entirely divested. 

Given the figures, one could argue that most recipients saw little value or utility in holding onto their ARKM tokens. To them, it seems liquidating them as soon as possible was a better option. 

Biggest Arkham (ARKM) holders ditch the token

Data provided by CryptoQuant reveals two wallets stood out in particular during this mass sell-off. “laurakornelija” (Wallet 0xf0d) received a significant amount of 24.9,000 ARKM tokens. However, they quickly dumped 24.8,000, or 99.6% of these in the market.

The massive dump resulted in the individual making an impressive profit of over 83 ETH.

Another major holder, “stablemark.eth,” received tokens from over 430 wallets and sent around 100,000 ARKM tokens (valued at approximately 55K USD) directly to the exchange, signaling a lack of interest in participating in the ecosystem.

While the token created much noise in the market when it launched, it has failed to retain the excitement. Perhaps the creators failed to communicate Arkham’s long-term value to investors. 

At the time of writing, ARKM exchanges hands at $0.5446 per token, according to CoinMarketCap. This is around 35% below its all-time high ten days ago. Whether it will regain favor among investors shortly remains to be seen.