The Spark token ([SPK](https://crypto.news/price/spark/)) experienced a sharp decline of 30% following its much-anticipated airdrop. Trading volume surged, yet the ecosystem remains on an upward trend.
Reasons for Spark Token Crash
The Spark token dropped to $0.0470, down 30% from its previous peak. This decline coincided with an 80% increase in trading volume, which exceeded $378 million—far above its market capitalization of $83 million. The token's decline is consistent with the overall downturn in the cryptocurrency market, affecting Bitcoin ([BTC](https://crypto.news/price/bitcoin/)) and other altcoins.
Current State of Spark Ecosystem
In spite of the token's declining price, the Spark ecosystem is showcasing strong performance metrics. The total value locked in its network hit a record high of over $6.66 billion, up from $6.48 billion in April. Spark offers on-chain capital allocation services, borrowing from Sky Protocol ([SKY](https://crypto.news/price/sky/)) and allocating funds across decentralized and centralized financial platforms.
Future Prospects for Spark Token
Market fluctuations are expected for the Spark token. Airdrops often lead to initial selling pressure from recipients. Historical examples show newly launched tokens usually face initial declines, such as ZKsync ([ZK](https://crypto.news/price/zksync/)) dropping over 30% before soaring to record highs, indicating that Spark's token could similarly bounce back.
As the Spark token continues its decline, the ecosystem displays strong metrics. Investors might anticipate a recovery in the token's price, following the typical market behavior observed with newly launched tokens.
