Airdrop rumors lead to surge in activity on MetaMask Swap and Polygon

Airdrops in the 5- to 6-figure range have become the new normal in the cryptocurrency space, and a growing number of analysts believe there are more to come. In September, dYdX issued a large number of airdrops to early users, and last week, the Ethereum Naming Service distributed approximately $17,000 to $30,000 in ENS tokens to platform users. Anticipation of additional "helicopter money" has also led to airdrop hunters swarming for the next big catch.

Frenzied participation in the protocol and qualifying for possible token drops has resulted in increased activity on popular second-layer platforms Polygon and MetaMask. Rumors of a possible launch of MetaMask’s own token have been circulating since last week, reflected in increased participation on MetaMask Swap.

According to Delphi Digital, activity on MetaMask Swap has seen “a significant increase in usage in recent days” as influencers such as Chico Crypto and a series of Crypto Twitter entities spread rumors of a possible airdrop.

As shown in the figure above, since late October, the trading volume of Ethereum (ETH) traded through MetaMask Swap has increased significantly, and the daily active users of MetaMask Swap on Polygon have soared from 2,000 on November 6 to 11 9000 people on 12th.

The protocol has amassed $200 million in revenue in 2021 thanks to increased transaction volume and MetaMask’s 0.875% fee from each exchange. This figure is impressive, especially compared to rivals such as SushiSwap, which has earned $70 million so far this year, and Curve, which has earned $12 million.

High Ethereum Fees Push Airdrop Hunters to Polygon

High fees on the Ethereum network may be the culprit for Polygon’s massive increase in users.

Evidence of a pick-up in activity on Polygon can also be found by looking at the average gas cost of a transaction on the Polygon network, which has been rising since mid-October when the average transaction cost on the network increased significantly.

According to DappRadar, the 30-day average transaction volume on MetaMask Swap has increased by 13.95%, while the number of active users has increased by 18.25%.

The historical activity graph above also shows a massive spike in trading volume on November 11, right when rumors of a potential airdrop were circulating widely on the cryptocurrency’s social media channels.

Whether the surge in activity will pay off for those seeking airdrops remains to be seen, and it is possible that MetaMask will take some steps to fend off those trying to game the system with Sybil attacks, similar to what happened with Ribbon Finance.

ParaSwap’s recent airdrop provides a good example of some “anti-airdrop hunter” countermeasures that can be employed to thwart those who would like to game the system. The ParaSwap team ensured that only 1.5% of the unique addresses participating in the protocol received the airdrop, much to the chagrin of airdrop hunters and early honest users of the platform.

Currently, it is unconfirmed whether the team at MetaMask will release its own native token, or if an airdrop will occur. This means that all suggested methods of interacting with the platform to obtain this rumored airdrop are nothing more than speculation at this point.