Solana's latest expansion into hardware-based crypto took an unexpected turn this week, as its new Seeker smartphone token $SKR surged over 200% just a few days after launch, according to CoinGecko data.
The price rally was fueled by the long-awaited token generation event (TGE) and airdrop related to Solana Mobile's second-generation device, a $500 Android phone for on-chain use. The initial volatility was expected, but the speed and magnitude of the movement caught the attention of the entire crypto market.
A phone for crypto users?
The Solana Seeker is positioned as a Web3-native smartphone, not a traditional flagship model. The device features direct wallet security, identity verification, and staking features integrated into the operating system.
The phone has a built-in Seed Vault for storing private keys, biometric transaction signing, and access to the Solana dApp Store.
Users can interact with dApps, stake tokens, and track yields without the need for third-party wallets.
According to Solana Mobile, over 150,000 units were pre-ordered in the first sales wave. Now the ecosystem is supplying more devices as the second award season begins.
SKR Token release
The Seeker ecosystem is powered by the Solana-based SKR token, with a total supply of 10 billion. About 30% of the tokens were distributed to users and developers through airdrops based on device ownership and on-chain activity.
The requirements were processed directly in the Seeker wallet, and staking was immediately possible. Large amounts of tokens were distributed to developers, and the most active users received six-figure amounts.
Unlike many recent launches, $SKR was released at a relatively low fully diluted value, which mitigated initial selling pressure.
Several factors combined to raise the value of the $SKR token during the first two trading days. Initially, staking removed a large portion of the tokens from circulation. Solana Mobile's staking model rewards the immediate locking of tokens, tightening supply during price formation.
Additionally, the yields from the first phase of staking, nearly 24% APY, encouraged participation. These rewards come from token inflation, not yield, benefiting early users and mitigating quick selling.
At the same time, rapid exchange listings and high trading volumes accelerated price formation. According to data, daily volume exceeded $140 million at its peak, which is high relative to the circulating market cap of the token. Major exchanges like Coinbase and Kraken listed the token, even though the market cap was only about $200 million.
These factors caused short-term supply pressure during the launch window.
Despite the changes, a large part of the initial demand was based on the effects of the airdrop, staking incentives, and low liquidity, not permanent yield or metrics related to usage.
When the unredeemed tokens are issued and inflation decreases, price pressure may return.
The Seeker launch represents Solana's most ambitious effort to link a physical device directly to token rewards.
It remains to be seen whether the model can expand beyond the early adopter cohort.