Renowned for its beautiful digital art and active community, the NFT Market project just debuted its native token, DOOD, with great hopes for it to improve the ecosystem and provide Doodles owners more value. One of the most well-known NFT initiatives, Doodles has drawn a lot of interest from its start since its dedicated following is ready for the next phase of the development of the project.
Doodles NFT Airdrop surge in sales before
Doodles noticed a significant rise in demand in the 24 hours before the airdrop, with sales nearly doubling to reach over $1.1 million. IT ranked among the top NFT collections for daily sales thanks to this increase in activity, therefore highlighting the buzz and excitement around the token introduction. Many of the holders obviously wanted to take part in the airdrop, which promised fresh DOOD tokens. With many anticipating that the token would offer an extra level of involvement inside the Doodles community and maybe become a valuable asset in the larger NFT market, the first reaction seemed to imply that the launch would be a success.
Sharp drop Complying with the Airdrop
The post-airdrop performance of the DOOD token was far from what many had expected, notwithstanding the initial buzz and strong sales figures. The market capitalisation of the DOOD token dropped almost 40% shortly following the airdrop, from a peak of over $100 million to about $60 million. Given the great expectations that had developed in the run-up to the debut, many were taken aback by this sudden fall. Investors and aficionados hoping the coin would be a great addition to the Doodles ecosystem left wondering about the future of the project. The decline in value raised general questions regarding the viability of the DOOD coin and its capacity to live up to expectations.
Utility’s Part in the Token’s Drop
There seem to be several elements influencing the unsatisfactory performance of the DOOD token. The apparent lack of instant value for the token was one of the main causes of the fall. Holders had no reason to keep or actively use the token without obvious use cases or physical rewards. Because many investors chose to cash out rather than hang onto the asset, this lack of utility resulted in rising selling pressure. Although the airdrop created immediate enthusiasm, the lack of a strong justification to keep or use the DOOD token beyond speculation caused the price of the token to sharply drop.
Furthermore aggravating the problem was the speculative aspect of the value of the token. Many times, the buzz around the airdrop seemed to be more motivated by short-term trading interest than by long-term token value confidence. Many investors sold off their shares as the speculative interest declined and the price of the token started to drop, therefore reducing its worth. Without clear long-term utility and a well-defined position inside the Doodles ecosystem, the value of the token seemed to be just dependent on short-term market fluctuations, which can be erratic and volatile.
Difficulties in Restoring Investor Trust
The DOOD Cryptocurrency Trading is currently displaying modest indications of recovery and trading much below its starting value. Still, it falls short of the expectations established before the airdrop. The Doodles team will have to show obvious value and integration into the larger Doodles ecosystem if the token is to rebuild investor confidence and overcome its sharp drop. Using use cases for the token—that is, letting it be used for unique access to events, goods, or other benefits for holders—may be part of this as well. The initiative will find it challenging to recover its former momentum without well defined ideas for the future of the token.
Investors are intently examining the project’s road map and waiting for specifics on the token’s part in forthcoming advancements. The Doodles team has not yet offered specific ideas for the use of the DOOD coin, hence their capacity to rebuild investor confidence will rely on their execution quality. There might still be possibility for a rebound if the team can effectively include the token into the larger ecosystem and provide holders real-world value and usage cases.
The need of long-term value in NFT projects
Other NFT initiatives looking at the prospect of releasing native tokens may learn a lot from the experience with the DOOD token. The next several months will be crucial for Doodles to decide whether the DOOD token can overcome present obstacles and realise its potential as a great asset. Whether the token can bounce back from its early challenges and turn into a long-term success will depend mostly on the project’s capacity to offer usefulness, include the token into its ecosystem, and re-establish investor confidence.
