Spark (SPK), the cryptocurrency native to the Spark decentralized finance (DeFi) protocol, has seen its value rise by approximately 100% over the past week amid increasing anticipation of the second phase of the Ignition airdrop.

In addition to the price surge, the protocol has also experienced significant growth, with its Total Value Locked (TVL) reaching an all-time high (ATH).

Why is Spark (SPK) Price Surging?

BeInCrypto data showed that SPK’s price has increased around 100% over the past week, reaching highs that were last seen when it launched. The token’s market capitalization has also doubled from around $30 million to over $62 million.

Over the past day alone, the price has appreciated 45.73%, bringing SPK to trade at $0.061. The trading volume also highlighted strong investor activity as it surged 403.90% to $486 million.

The surge in activity seems to be primarily driven by the project’s airdrop. Phase 1 of the airdrop, which allows users to claim tokens, concludes today. 

The next phase, ‘Overdrive,’ is also nearing a critical deadline. During this phase, participants have the opportunity to qualify for a second airdrop.

“Overdrive is for the ones who staked, stayed & believed. It’s the 2nd phase of the airdrop, where you can stake your SPK via @symbioticfi and get a share of the unclaimed Ignition SPK,” the protocol posted.

According to the official announcement, users must stake their Ignition airdrop by July 29, 2025, and maintain it until August 12, 2025, to get rewarded. Additionally, those who save at least $1,000 in USDS or USDC continuously during this period can earn a 2x boost on their Overdrive units.

The staking requirement, a critical component of the Overdrive initiative, appears to be a significant factor behind the recent price pump as users rush to meet the deadline. Staking tokens reduces the circulating supply.

This, in turn, puts upward pressure on the price. The excitement surrounding the airdrop could also be boosting market sentiment, leading to more interest in the token. This likely explains SPK’s latest behaviour.

However, once the staking period ends and the tokens are distributed, some recipients might sell them. This could create selling pressure and possibly lower the price in the short term after August 12. A similar pattern was observed when the token launched in June.

Despite this, some analysts are increasingly optimistic about SPK’s prospects.

“There’s still plenty of room for growth. I believe Spark’s growth trajectory could see it hit $0.10 – $0.15 within the next year, potentially even reaching $0.50 or more in the next two to three years as it expands its partnerships, explores cross-chain opportunities, and develops new DeFi products,” an analyst predicted. 

Spark TVL Hits All-Time High

Meanwhile, growth isn’t just limited to price. According to DefiLama data, Spark’s TVL reached a new peak of $8.15 billion today.

The platform’s products, such as Spark Savings offering a 4.5% APY, and SparkLend, which now holds $4.9 billion in TVL, are leading the charge. 

The Spark Liquidity Layer (SLL), responsible for managing liquidity, also has $3.98 billion in allocated assets. Furthermore, Token Terminal data showed that the value of active loans across the market reached a new high in July. Notably, Spark ranks third alongside Aave and Morpho as a leader in this space.

These metrics highlight the growing demand for decentralized solutions and the role that platforms like Spark play in supporting the broader DeFi ecosystem.