Walrus (WAL) Price Drops After Binance Alpha Airdrop as Sell Pressure Rises
After the much-anticipated Binance Alpha Airdrop, Walrus (WAL) has faced a notable price correction, dropping over 4% in the past 24 hours—well below the crypto market’s average decline of 1.11%. The token, which opened the day trading at $0.4042, slid to around $0.379, marking a 7.52% weekly decline.
The sell-off came shortly after Binance announced its Alpha Airdrop program, allowing users to claim free WAL tokens. While the event generated significant attention, it also created a wave of short-term selling pressure, as many recipients quickly took profits.
Binance Alpha Airdrop Sparks Selling Frenzy
Binance Wallet officially listed Walrus (WAL) on Binance Alpha, launching an incentive-based airdrop campaign. Eligible participants were able to claim 150 WAL tokens through Alpha Points on the Binance Events Page. The campaign was structured in two stages:
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Phase 1 (first 18 hours): Required at least 210 Alpha Points.
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Phase 2 (final 6 hours): Threshold reduced to 195 points, decreasing by 15 points per hour if rewards remained unclaimed.
The program created strong community engagement, but the immediate availability of tokens triggered widespread sell-offs. This quick distribution, combined with technical market resistance, amplified WAL’s downward movement.
Technical Rejection and Weak Market Sentiment Deepen Decline
Following the claim event’s start at 07:00 UTC, WAL’s price rapidly fell about 3.8%, later extending to 4.67%, significantly underperforming the broader crypto market. Analysts point to three main drivers behind this decline:
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Airdrop Sell Pressure: Many airdrop recipients liquidated their tokens immediately, creating short-term downward momentum.
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Technical Rejection: WAL failed to break key resistance levels at its 7-day SMA ($0.404) and the 23.6% Fibonacci retracement ($0.433).
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Weak Altcoin Sentiment: Broader market caution hit altcoins hard, with the Altcoin Season Index dropping from 51 to 44 within 24 hours—a 13.8% decline.
Walrus Fundamentals Remain Strong
Despite the recent volatility, Walrus maintains solid technical and fundamental strength. Built on the Sui blockchain, Walrus is a decentralized storage protocol that enables the storage and verification of large data chunks efficiently.
The project leverages erasure coding to minimize storage costs, achieving a 5× blob size ratio compared to the 100× cost typical in traditional blockchain storage.
Currently, WAL has a total and max supply of 5 billion tokens, with 1.47 billion in circulation, a market capitalization of $565.8 million, and a 24-hour trading volume of $25.04 million.
These robust fundamentals suggest that while short-term traders may be driving current volatility, the project’s core value proposition remains intact.
Expert Insights: A Typical Post-Airdrop Market Reaction
Market experts see WAL’s recent price dip as part of a common post-airdrop correction cycle, where early claimants take quick profits before the market stabilizes. This pattern has been observed across multiple tokens following major airdrops.
As speculative pressure eases and technical support levels hold, analysts believe Walrus may find equilibrium and begin to recover once sentiment improves.
For long-term investors, the recent pullback could represent a healthy market correction rather than a fundamental weakness—an opportunity to re-evaluate WAL’s strong technology base amid temporary turbulence.
