$50M Worth of Unclaimed $GRASS Looms Large Over Thin Onchain Liquidity
The Solana network performed admirably during Grass Network’s hotly-anticipated TGE, but not every application maintained 100% uptime.
- Author: Finn Miller
- Published: October 29, 2024 at 15:49
Boasting over 2M users, the $GRASS airdrop was expected to be one of the Solana network’s biggest stress tests in recent memory. Over 52% of the initial $GRASS distribution has now been claimed, with network activity largely back to normal.
While $GRASS has succeeded in holding its value in the hours following launch, the TGE (Token Generation Event) didn’t go smoothly for everyone.
Unforeseen restrictions and a high FDV (Fully Diluted Valuation) drew criticism from Solana users, while wallet providers struggled to shoulder the load.
Over $50M USD Worth of $GRASS Still Unclaimed
Slated to distribute 100M tokens to platform users, $GRASS airdrop claims went live at 13:30 PM UTC on October 28. The Solana network pulled off the chain’s largest airdrop by user participation in history handily, maintaining perfect uptime throughout the event and dispelling concerns surrounding the network’s resilience.
[https://x.com/SolanaFloor/status/1850916237829881995]
Listing on both decentralized and centralized exchanges at $0.66, $GRASS has held its value remarkably well. At press time, the token is exchanging hands at $1.03, representing a 56% price increase since launch.
Despite $GRASS’s strength, a considerable number of tokens are still unclaimed, looming large over $GRASS market dynamics.
According to Flipside data, only 49.4M $GRASS tokens have been claimed by airdrop recipients. Roughly 50.6% of the initial distribution remains unclaimed, meaning that over $50M USD worth of $GRASS tokens have not yet entered circulation.
This overhang is further exacerbated by $GRASS’s thin onchain liquidity. Step Finance data indicates that onchain pools only hold roughly $683k worth of $GRASS liquidity, suggesting volatile price action might be on the horizon.
However, $GRASS’s low onchain liquidity is countered by its strong presence on centralized exchanges. Popular CEXes have facilitated the bulk of $GRASS volume, with Gate.io handling over $70M of trading volume in the last 24 hours.
Solana Community Concerned About $GRASS Valuation
While $GRASS’s launch looks like a resounding success in the charts, Solana community members have expressed bitter disappointment with the TGE event. Detractors criticized Grass for launching the token with an FDV of over $800M with comparatively small liquidity.
Disgruntled Grass users took to social media to air their grievances further. Some claimants went so far as to label the DePIN/AI project as a “scam” after finding themselves unable to claim their allocations due to uncommunicated geographic restrictions.
Phantom Wallet Suffers Under Heavy Load
While the Solana network maintained perfect uptime throughout the event, popular wallet providers weren’t so lucky.
Phantom wallet, arguably Solana’s most popular wallet provider, suffered a major incident, undoubtedly due to the unprecedented number of users trying to claim their $GRASS allocations.
Dune Analytics data suggests that the busiest claim periods came right at the beginning of the airdrop, with over 168,000 users collecting their tokens in the first three hours.
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[https://solanafloor.com/videos/rnFlAzGn9KI]