Key Takeaways:
The highly anticipated Scroll ($SCR) governance token launch has fallen short of expectations after being plagued by token allocation and distribution issues. The Layer-2 scaling solution leverages zk-Rollup technology to reduce transaction costs, increase throughput, and enhance the stability of the Ethereum blockchain.
$SCR Token Disappoints at Launch After Whales Scoop Airdrop to Create Intense Selling Pressure
$SCR debuted at $1.40 but a rejection saw its price decline by 30% in the last 48 hours to $0.94. With its market capitalization shrinking to below $180 million, the token has also dropped out of the top 250 largest cryptocurrencies list on CoinMarketCap. This comes despite SCR being heralded as the “turtle that wins the Ethereum scaling race”.
Data sourced by DefiLlama showed that the Total Value Locked (TVL) for the token stood at $793 million, which is over $200 million lower than the $995 million TVL it recorded on October 16, when it first began trading.
The uptick in activity was driven by the airdrop farming event that was held ahead of the snapshot on October 19, 2024. However, issues stemming from the token allocation and distribution in the lead-up to the SCR launch led to its downfall.
Users had already expressed their frustration at Scroll’s decision to allocate 5.5% of the supply to the Binance Launchpool and just 7% for the initial airdrop. Things got complicated this week after reports emerged about Scroll network’s refusal to cap its airdrop campaign, which led to whales scoping up a majority of the available SCR tokens.
The top 10 wallets are set to receive 11.7% of the airdrop and the top 100 will receive 34.4%.
As a result of the whale activity, the token is struggling to sustain its price rally as investor demand failed to keep pace with the selling pressure created by the whales that received a hefty portion of the airdrop.
Scroll promised to reward early adopters and users of the network with “marks” that could be converted into SCR during the airdrop. This method, known as “points farming”, has been commonly seen in the market over the past years.
However, the omission of a fixed allocation and a maximum cap has essentially derailed the equilibrium of the token supply. Scroll risks facing a difficult short-term future as the whales need to be convinced to not sell their tokens while prospective investors need to be promised a future upside.
How To Claim Scroll Airdrop, Launch Date & Eligibility
Scrolls Has Lost Its Key Support Levels and Is Trading Below $1
The Money Flow Index for $SCR was near the oversold territory in the 1-hour timeframe, indicating there was heavy selling pressure in recent hours. The rejection from $1.40 saw its price plummet below the $1.28 and $1.19 support levels. Meanwhile, the bulls tried to take action and help it climb above the lower support level to convert it back into a support zone but failed.
SCR is down 19% since its rejection at the $1.19 support level. The token now highlights a strong bearish trend that is progressing, which combined with the selling pressure, has resulted in Scroll dropping below the $1 level.
At the time of writing, SCR is changing hands at $0.9323 – down 9% in the last 24 hours. The token’s market cap has dropped by nearly 10% to $176.15 million and its 24-hour trading volume declined 49% to $207.39 million.
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