The Spark (SPK) token has experienced a significant price decline following its much-anticipated launch and airdrop. After debuting at an all-time high of $0.075, the token plunged to lows around $0.0470 on June 18, marking a drop of over 30% from its peak. This price slide occurred even as its ecosystem's total value locked (TVL) reached a record $6.66 billion, up from $6.48 billion in April, signaling strong platform fundamentals.
SPK is a DeFi platform that allocates capital on-chain by borrowing stablecoins from Sky Protocol’s $6.5 billion reserves and deploying them across decentralized finance, centralized finance, and real-world assets. It offers users the ability to deposit stablecoins for yields, with a savings TVL of $3.29 billion and an average savings rate of 4.5%. Users can also borrow USDS tokens against liquid assets.
Despite Spark’s listings on major exchanges such as Binance, Coinbase, Bybit, OKX, and Bitget, the token suffered from a post-airdrop sell-off, a common occurrence for newly launched tokens. Binance notably included SPK in multiple services, including margin and futures trading with up to 75x leverage, and offered exclusive airdrops. Coinbase listed SPK with an Experimental label due to its early-stage status and high volatility risk. Other platforms following suit included KuCoin, OKX, Crypto.com, BitMart, MEXC, and WOO X.
The circulating supply at launch was 1.7 billion SPK tokens, with a maximum supply of 10 billion tokens, meaning 8.3 billion tokens will be unlocked over time, increasing circulating supply pressure. The surge in 24-hour trading volume to over $378 million (far exceeding its current $83 million market cap) underscores heightened speculative activity and selling pressure. This dynamic also contributed to the price drop.
Market conditions broadly remain challenging, with Bitcoin (BTC) and many altcoins in a downturn, further impacting SPK and other tokens like Virtuals Protocol, Dogwifhat, and Kaspa, which saw double-digit declines. Historical trends from tokens such as ZKsync (ZK) and Berachain (BERA) suggest that such initial price corrections might be temporary, with potential for recovery in coming weeks as the market absorbs new supply and investor sentiment stabilizes.