Ethereum Layer-2 Scroll network saw its total value locked (TVL) fall by $170 million from its peak on October 16, 2024. This decline emphasizes a pattern in the crypto world where short-term strategies like airdrops bring temporary surges in TVL but don't lead to sustained user interest.
Scroll's TVL rose significantly before a snapshot event on October 19, part of a distribution of SCR tokens through an airdrop. An announcement on October 9 led airdrop farmers to increase holdings rapidly, but TVL dipped soon after.
While crypto airdrops attract new users with potential token rewards, they also dilute loyal users' rewards. The phenomenon of airdrop farming, seen also in projects like Mode Network and ZKSync, creates volatility, destabilizing projects and undermining trust.
Scroll and other projects face the challenge of designing incentive structures rewarding long-term participation without relying on speculators.
