A new report from crypto exchange MEXC revealed that more than one-third (35%) of all new user registrations on the platform were driven by airdrop participation, surpassing other traditional user acquisition channels like referral programs, marketing campaigns, and organic signups.
The evolution of user behaviour during airdrop campaigns
Historically, airdrops were designed as a low-barrier entry point into the crypto fold for new users, especially the unbanked and people in regions with limited financial access. They attracted these users by providing a cost-free method to engage blockchain projects and offering financial incentives for simple tasks.
However, MEXC’s latest report reveals a change in the dynamics of how users engage with airdrop campaigns. Gamified mechanics and mobile-first solutions are playing an increased role in influencing user behavior and driving engagement in airdrop campaigns.
The rise of the “tap-to-earn” trend, particularly within the Telegram ecosystem, has attracted the attention of millions of users. These apps adopt gamified mechanics and provide entertainment value, allowing users to earn points and rewards and mine tokens using only their mobile phone. This system appealed to many users seeking to turn their gaming experience and social media time into financial gains.
The growing social popularity of tap-to-earn games like Hamster Combat, Yescoin, and Notcoin has contributed to the surge in airdrop-driven registrations.
The accessibility and simplified requirements for participation offered by these apps have attracted millions of users with no prior crypto interest or experience to join airdrop campaigns on CEXs.
Post-airdrop user behaviour
While airdrops are effective at driving initial sign-ups, User retention is the true benchmark of the success of any airdrop campaign for CEXs.
According to the MEXC report, 76% of users who register via airdrop campaigns remain on the platform and engage with other projects after claiming their airdrop tokens.
Further analysis revealed that 18% of airdrop participants become active traders, averaging daily trading volume of over $58,000, with some even reaching as high as $31 million. 58% continue to trade occasionally, while 24% withdraw their funds and cease further trading activity.
Regional trends in airdrop engagement
Regional analysis shows the highest levels of engagement in airdrop campaigns in the CIS region, where 67% of new users stem from airdrop participation.
The popularity of Telegram and mobile-first experiences in the region has led to the rise of a strong crypto-friendly culture in the region. Southeast Asia and South Asia follow with 51% and 32% respectively. Increased level of engagement in both regions is driven by limited access to traditional financial services.
Airdrops provide a free and decentralized channel of access to financial services without any underlying cost in these regions, offering them an efficient and cost-effective solution to international remittance and cross-border payments.
Conversely, Europe, Africa, and Latin America saw low levels of airdrop participation despite strong overall crypto interest and adoption in the regions. The rise of DeFi platforms, which appeal and offer more lucrative earning opportunities, and "token fatigue" among users who have participated in numerous airdrop campaigns without seeing tangible value from the tokens they received, may be diverting the attention of users in these regions away from airdrop campaigns.
Vladislav Sopov
Dan Burgin