Meteora crypto price crashed by over 40% on its first trading day as many of the airdrop recipients dumped their tokens. MET token plunged to a low of $0.5114, down from the intraday high of $0.90. This plunge brought its market capitalization to over $263 million and its fully diluted valuation to $548 million.
Meteora Crypto Price Crashed as Insiders Sold
On-chain data shows that there was intense selling by insiders as they cashed out. Data identified by Arkham shows that three top addresses that were involved in the TRUMP token launch received MET tokens worth over $4.2 million and sold them all through OKX.
More airdrop recipients have likely dumped their tokens after the launch. These investors and insiders do this as a way of cashing out when the token is at a high level.
It is common for these investors to sell part of their holdings, which helps them achieve capital appreciation while protecting their assets.
MET price is also plunging in line with what happens when there is an airdrop. Historically, newly launched tokens rise briefly and then plunge because of the relatively weak demand.
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A good example of this is what happened after the Pi Network mainnet launch in February. The token initially jumped to a record high of $3 and then plunged to $0.2 as many pioneers dumped and supply continued rising.
A closer look at other airdrop shows that they all jumped initially and then plunged. Donald Trump’s World Liberty Finance (WLFI) token jumped to $0.3200 and then plummeted to a low of $0.0865.
Similarly, TRUMP meme coin price initially soared to $50 after its launch in January and then dropped to the current $5. Other tokens like LayerZero, DoubleZero, and Wormhole had a similar price action.
Will the MET Price Bounce Back?
For starters, Meteora is one of the biggest players in the Solana ecosystem. It is a top decentralized exchange with over $854 million in total value locked (TVL). Its network handled over $30.8 billion in volume in September, up from $7.5 billion in August. Its volume was $24.2 billion this month.
So, is it safe to buy the Meteora dip? A closer look at some of the recent airdrops plunge after their launch, rebound a bit as some investors buy the dip, and then resumes the downtrend. WLFI price rose to $0.32, crashed to $0.1612, and then rebounded to $0.256. It then crashed.
Similarly, Spark (SPK) price plunged to $0.029 initially and then short-squeezed to $0.1896, a few days later, and then crashed to $0.04. Therefore, there is a likelihood that the Meteora price will do the same, making it a risky investment.
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