The Doodles NFT project, once hailed as a pioneer in the digital art space, has recently experienced a significant downturn following the airdrop of its native token, DOOD. This event has led to a substantial decrease in both the token's market capitalization and the floor price of Doodles NFTs, raising concerns within the crypto community.
Doodles' DOOD token drops 40% post-airdrop
The DOOD Airdrop and Immediate Market Reaction
On May 9, 2025, Doodles initiated the long-anticipated airdrop of its DOOD token, distributing a total supply of 10 billion tokens on the Solana blockchain, with plans to bridge to Ethereum's Layer-2 solution, Base. Despite the excitement leading up to the event, the aftermath saw DOOD's market capitalization plummet from over $100 million to approximately $60 million within 24 hours—a 40% decline. This rapid depreciation is attributed to a wave of profit-taking by recipients of the airdrop.
Impact on Doodles NFT Valuation
The negative sentiment extended beyond the token to the Doodles NFT collection itself. According to data from OpenSea, the floor price for Doodles NFTs dropped from 3.5 ETH to under 1.5 ETH on the same day, marking a 60% decrease. With Ethereum trading at approximately $2,336 at the time, the total market value of the Doodles NFT collection fell to around $31 million.
Price fluctuations of DOOD on the 15-minute chart, screenshot from DEX Screener.
Community Response and Analysis
The community's reaction to the airdrop has been largely critical. Many users on social media platforms expressed disappointment, labeling the event as "underwhelming." Analysts have pointed to the lack of a robust strategy to maintain token value post-airdrop as a key factor in the rapid sell-off.
Comparisons to Similar NFT Projects
Doodles' experience is not isolated. The Pudgy Penguins NFT project underwent a similar scenario in December 2024 when it airdropped its PENGU token. Despite an initial market capitalization of $2.8 billion, PENGU's value halved on the first day and has since stabilized around $900 million. These cases highlight the challenges NFT projects face when introducing tokens without comprehensive value retention strategies.
Trading Volume and Speculative Activity
Prior to the airdrop, Doodles NFTs saw a surge in trading volume, with a 97% increase on May 8, 2025. Over the past week, sales reached $2.6 million, a 350% rise compared to the previous week, according to CryptoSlam. This spike indicates heightened speculative activity leading up to the airdrop, which may have contributed to the subsequent market volatility.
Strategic Considerations for NFT Projects
The recent events underscore the importance of strategic planning when introducing tokens to NFT ecosystems. Projects must consider mechanisms to sustain token value, such as staking, utility within the ecosystem, and controlled release schedules. Without these measures, there's a risk of rapid devaluation, as seen with Doodles and Pudgy Penguins.
The floor price of the Doodles NFT collection on OpenSea as of noon on May 10, 2025.
Conclusion
The Doodles project's recent downturn following the DOOD token airdrop serves as a cautionary tale for NFT initiatives considering similar moves. While token airdrops can generate excitement and engagement, they must be accompanied by well-thought-out strategies to maintain value and investor confidence. As the NFT space continues to evolve, projects that prioritize sustainable growth and value creation are more likely to succeed in the long term.
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