Second-layer blockchain Starknet experienced a sharp drop in the price of its token after the airdrop and listing.

According to CoinMarketCap data, over the past 24 hours, the token’s price has fallen by more than 17%. The price drop occurred after listing on large centralized exchanges (CEXs) including Binance and KuCoin.

At the opening of trading, the price of STRK was $2.38 and soon increased to a record $3.66 in less than an hour. At the time of writing, STRK is trading at $1.94, 47% below its Feb. 20 peak.

The drop in the coin’s value may also be due to the recent airdrop of STRK tokens. On Feb. 20, the StarkNet team unlocked 728 million STRK tokens (7.3% of the issue) for more than 1.3 million wallets as part of the airdrop. Early adopters of StarkNet and StarkEx, as well as members of the Ethereum community, including the authors of the EIP and some developers, are eligible for the airdrop.

The token airdrop also caused the number of active users on the Starknet network to plummet. On Feb. 14, 2024, the number of active wallets on the network crossed the 225,000 mark. Later the project team announced they would distribute tokens, with 1.3 million users set to receive rewards. On the day of token distribution, the number of active users dropped to 84,260.