Airdrop Incentives: Driving DeFi Growth & User Engagement

The decentralized finance (DeFi) sector is thriving, exceeding $50 billion in Total Value Locked (TVL) as of 2024, according to DefiLlama. Despite this success, many DeFi protocols face challenges attracting users, boosting liquidity, and ensuring robust governance participation. To overcome these hurdles, airdrop incentives have emerged as a critical strategy within DeFi. These incentivize projects to attract new users, encourage active engagement, and drive overall growth by distributing free tokens across the DeFi landscape.