Optimism’s native cryptocurrency, OP token, has experienced a significant decline in price compared to other top 50 cryptocurrencies. This drop comes in anticipation of a $30 million token unlock, scheduled for September 30th. Token unlocking events are commonly employed by cryptocurrency projects to gradually release tokens into the market, rather than releasing them all at once. However, these events often lead to selling pressure and subsequent price drops.
According to Token Unlocks, a tokenomics platform, approximately 24.16 million OP tokens, equivalent to roughly 3% of the circulating supply, are set to be unlocked. As a result, a little over $30 million worth of OP tokens will become available for trading. Out of this amount, $15.49 million will be allocated to core contributors, while $14.26 million will be reserved for investors. This unlock event is likely to affect the OP token’s price negatively.
At present, the OP token is trading at $1.26, maintaining a flat trend for the day. However, it experienced a brief 3% rally within the last five hours. These price fluctuations can be attributed to the anticipation and uncertainty surrounding the upcoming unlock event. Investors generally expect a decrease in price when a new supply of tokens becomes available for sale. Therefore, the current trading patterns suggest that market participants are cautious about the potential impact on the OP token’s value.
Recent Developments
Optimism recently announced its plan to conduct a private sale of $160 million worth of OP tokens on September 21st. This strategic move aims to further expand the project’s reach and secure additional funding. Additionally, on September 19th, Optimism unveiled its third airdrop, distributing 19.4 million OP tokens to over 31,000 addresses that participated in delegation activities related to the network’s decentralized autonomous organization (DAO), Optimism Collective.
As the unlocking event approaches, the OP token is experiencing a decline in price compared to other leading cryptocurrencies. The gradual release of tokens through unlocking events often exerts selling pressure on the market, resulting in price drops. Currently trading at $1.26, the OP token has shown brief periods of volatility but remains relatively stable. Nevertheless, the expectations and perceptions of investors regarding the upcoming unlock event play a crucial role in determining the token’s future value. It will be interesting to observe how the market reacts to the unlocked supply of OP tokens and whether the price can withstand the expected selling pressure.