DeFi Thrives on Solana as Kamino Gears Up for Token Airdrop
Kamino unveils a points program, hinting at an upcoming token airdrop as Solana DeFi Sector activity and airdrops drive up TVL.
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The resurgence of the Solana DeFi sector has helped to boost overall network performance. But the future could even be brighter for the blockchain network as more DeFi protocols plan to airdrop tokens.
Solana's fastest-growing DeFi protocol, Kamino, will introduce a points program, setting the stage for an airdrop. A contributor to the platform confirmed this on Twitter Spaces on Thursday, adding that the points could count towards a future token.
Kamino is a lending and yield-generating platform that has seen unprecedented growth recently. Although it launched in 2022, its total value locked (TVL) was less than $15 million as of November 14, 2023. It is now $81.29 million, representing a 468% monthly increase.
With Kamino set to launch a points program, the platform could see more use, translating to increased activity for Solana. Although Kamino has not announced its points program, using points before airdropping is similar to the Jito protocol. More protocols on Solana are gamifying usage to boost participation.
Success of Previous Airdrops
Jito airdrop has been a success for the protocol and the Solana network. The JTO token started trading at around $2, according to CoinMarketCap. It is now worth $3.69 and has increased by 96% in 24 hours. JTO has a total supply of 1 billion tokens; only 10% is meant for airdrop to eligible contributors. Presently, 115 million tokens are in circulation with a market cap of over 430 million.
Jito is a liquid staking protocol and airdropped its JTO tokens to early users on December 7. The protocol has the second-largest TVL on Solana and initially used the points system before the airdrop.
Before the Jito airdrop, Pyth Network airdropped 250 million tokens to its early adopters. Pyth Network is an oracle platform originally built on Solana before moving to its chain. PYTH is up 22% in the last seven days, although it is also down 26% in thirty days.
Meanwhile, the decentralized exchange Jupiter Swap is also planning an airdrop. It announced the airdrop recently and asked users to connect their wallets. However, it has not specified when the airdrop will go live.
Airdrops and DeFi Activity Boosting Solana
The DeFi activity and airdrop launches on Solana are boosting its comeback. In the past 24 hours, SOL has risen 10.3%. This could be due to several reasons, including JTO airdrop. The token is trading at $72 presently and has gained more than 500% this year. This makes it the best-performing major altcoin this year.
With SOL value increasing and DeFi activity booming, Solana TVL has reached $853 million. This represents a more than 90% increase since November 7.
