Why Grass continues to grow despite a failed airdrop

Over the past week, the price of the GRASS token has surged by 136%, with a daily increase of 16.5%. Given the unsuccessful airdrop and the criticism from the cryptocurrency community, this trend is quite surprising.

We will explain the reasons behind the Grass project, part of the decentralized physical infrastructure networks (DePIN) sector, gaining momentum even after a mixed launch.

The Airdrop as an Initial Phase and Its Effects

The distribution of GRASS tokens sparked mixed reactions among the community. In the first airdrop, the Grass team allocated 10% of the total token supply to 2 million users.

Approximately 100,000 participants received more than 100 GRASS tokens, which amounts to about $200 million. However, many received much less, leading to disappointment in the project. Users complained that they had spent many months completing tasks for Grass yet saw little return on their efforts.

Nonetheless, the airdrop succeeded in attracting a large audience and laying the groundwork for future developments, such as the introduction of staking features.

Also read: What is an airdrop - where to find giveaways and how to profit from them

Appealing Staking: 35% of Supply Locked with 50% APY

The next phase post-airdrop involved an enticing offer for investors to stake their GRASS tokens. Currently, around 35% of the circulating supply is locked in staking, with an annual percentage yield (APY) of roughly 50%.

This high APY has drawn the attention of not only retail investors but also major venture capital funds. Adding to the optimism is the fact that large investors cannot immediately access staking rewards, reducing the risk of a mass sell-off of GRASS.

Data Protection and Earnings for Network Participants

Grass enables users to share their data through an encrypted TLS channel, ensuring confidentiality. Users who run nodes for Grass will be rewarded in the future as demand for the network is expected to rise.

The project has peaked at 80 TB of data being extracted daily. If, following the conclusion of the airdrop, the volume decreases to 10% of its current amount, this will result in approximately 10 TB per day or 300 TB monthly.

Also read: How to find profitable cryptocurrency airdrops - six expert tips

Considering the average cost of data extraction ranges from $0.1 to $100 per gigabyte, Grass has the potential to generate:

about $300,000 per month if the price remains at $1 per gigabyte;

up to $3 million monthly when reaching 80 TB per day.

This scenario attracts users eager to earn income without compromising their data privacy.

Outlook and Conclusions

The current success of Grass demonstrates that attracting investors is possible not only through a successful airdrop. Significant factors include advanced data protection mechanisms, appealing staking conditions, and a clear economic model.

According to CoinGecko, at the time of writing, GRASS is trading at $1.91, with a market valuation of approximately $468.8 million.