Down the Wormhole Price: W's 50% Plunge in 7 Days

Within days of its launch, Wormhole's native token, W, experienced a significant decline, plummeting by over 50%. As of the latest update, the price of the Wormhole token stands at $0.5798, accompanied by a market capitalization of $1,043,655,145 and a trading volume declining $293,695,959. Let's take a look at this Wormhole price prediction article in more detail.

How has the Wormhole W Price Moved recently?

The current price of the Wormhole token is $0.582370, reflecting a 24-hour trading volume of $585.95 million, a market capitalization of $1.05 billion, and a market dominance of 0.04%. Over the past 24 hours, the price of W has decreased by -3.62%.

Wormhole achieved its peak price on April 3, 2024, reaching an all-time high of $1.594630. Conversely, its lowest recorded price occurred on April 13, 2024, at $0.461923, marking its all-time low. Following its all-time high (ATH), the lowest price experienced since then was $0.461923 (cycle low), and the highest price observed since the last cycle low was $0.591071 (cycle high).

As for sentiment analysis, the current Wormhole price prediction sentiment remains unspecified. Meanwhile, the Fear & Greed Index registers at 72, indicating a state of greed in the market.

Wormhole Token Plunges 50% Post Airdrop Fallout

The value of the token W has dropped significantly in the past week, decreasing by 4.5% in just the last day. This decline comes after the token was introduced at the beginning of last month as part of Wormhole’s initial governance token giveaway. The decentralized finance (DeFi) community quickly embraced this opportunity because it was widely available: Wormhole enables users to transfer tokens between different blockchain networks. This allowed wallet holders across more than 30 networks, such as Ethereum, Solana, Avalanche, and Sui, to receive W tokens for free.

In total, over 400,000 wallets were eligible to receive these airdropped tokens, including various Solana wallets, the exchange and aggregator Backpack, Jupiter, NFT holders like Mad Lads and Yoots, DeGods participants, and even active members of the Wormhole Discord community.

Last week marked the launch of W as a native token on the Solana blockchain, with connectivity to other blockchains via Wormhole technology. Flipside reported an impressive start, with over 37,000 wallets claiming W within minutes of the token's airdrop, briefly propelling its market cap above US$3 billion.

Since then, however, the token's initial surge has subsided. Looking ahead, the coin's roadmap outlines plans for the W token supply to eventually expand to 10 billion tokens.

What went wrong?

Wormhole faced further challenges as its performance diverged sharply from that of its peers. While projects like Ethena, with its ENA token, saw a rapid increase in value after listing, Wormhole struggled to maintain its market position. Ethena's token doubled in price shortly after launch, highlighting the contrast with Wormhole's decline.

This discrepancy sparked discussions in cryptocurrency circles, with developers and enthusiasts questioning Wormhole's future. The subdued response to Wormhole's airdrop compared to the excitement around Ethena's launch showcased the differing paths these projects were taking. Despite Wormhole's ambitious goals and past successes, it was losing ground in capturing investor interest and market sentiment.

Looking ahead, Wormhole faced uncertainty. Once seen as a leader in multi-chain protocols, its recent price drop raised doubts about its ability to deliver on promises. While the upcoming Wormhole DAO—an organization spanning Solana, Ethereum, and layer-2 networks—held potential, the subdued reaction to recent developments suggested waning enthusiasm among stakeholders.

This was a stark contrast to Wormhole's earlier success, when it achieved a $2.5 billion valuation after a $225 million funding round in November. The project had drawn significant investment and attention, positioning itself as a frontrunner in blockchain interoperability. However, as enthusiasm waned, Wormhole confronted the realities of market volatility and investor sentiment.

Wormhole's price decline served as a reminder of the market's unpredictability and risks associated with speculative assets. While Wormhole's journey was ongoing, the era of its rapid ascent had ended. Now, the challenge was to navigate changing market dynamics, demonstrate resilience, and deliver concrete outcomes in a competitive environment.