Airdrops often generate rapid spikes in user activity but do not always ensure sustainable growth. Short-term participants may join only to claim tokens, then leave once rewards are sold. Sustainable growth occurs when airdrops are tied to meaningful participation, such as governance, staking, or continuous ecosystem usage. Analyzing retention metrics—like active wallets post-distribution—reveals effectiveness. Projects that distribute utility tokens with long-term value tend to retain users better. Additionally, integrating airdrops into a broader community strategy, such as ambassador programs or recurring rewards, fosters ongoing engagement. While airdrops can attract attention and bootstrap networks, true sustainability depends on whether users find long-term value in staying, rather than chasing immediate financial gains.
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Layer-2 growth indirectly boosts Ethereum demand. Although transactions move to L2s, security and settlement still rely on Ethereum mainnet. As trading volume on Arbitrum, Optimism, or zkSync grows, demand for ETH increases via gas usage, staking collateral, and liquidity pairing. The Dencun upgrade lowering fees may accelerate this adoption. L2 expansion strengthens Ethereum’s ecosystem value, supporting ETH’s long-term fundamentals, even if short-term fee revenue fluctuates. Thus, L2 volume growth is structurally bullish for ETH.
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Massive, clustered liquidations can cascade—forcing swap slippage, stressing bridges, widening funding-rate dislocations, and straining oracle/settlement mechanisms. If leverage is large and distributed across interlinked protocols, contagion can spread rapidly. Properly capitalized clearing, circuit breakers, and liquidity backstops reduce systemic risk, but concentrated leverage and thin liquidity magnify it.
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