Optimism Set To Unlock 24 Million Tokens
The Optimism network is preparing for its latest token unlock event, which will release over 24 million tokens into circulation. According to Token Unlocks, a website that tracks on-chain tokens, these tokens are currently valued at around $30.7 million.
The token unlock event is scheduled for September 30, just a few days away. This release represents approximately 3.03% of the total OP supply all at once. It comes after the network locked the same amount of tokens in August.
The 24.16 million tokens will be divided between Core Contributors and Investors, with 12.75 million going to the former and 11.41 million going to the latter. This event is part of a larger wave of token unlocks worth over $54 million happening within the next week.
Gauging The Impact on OP Price
Looking at historical performance during similar events can give us an idea of how the OP price might react. In the case of the last token unlock event in August, the price of OP dropped from $1.5 to $1.3 in just two days.
This suggests that token unlocks tend to have a bearish effect on price, especially considering the size of the upcoming Optimism unlock. If this pattern holds, we could see a decline of at least 10%, potentially pushing the OP price below $1.1.
Even before this unlock event, OP has already experienced a significant drop in price, falling more than 10% in the past week and breaking below the $1.3 resistance level.
Hot Take: The Impact of Token Unlocks on OP Price
The upcoming token unlock event for Optimism poses a threat to the price of OP, which is already experiencing a downward trend. With over 24 million tokens set to be released into circulation, there is a high likelihood that the OP price will be negatively affected, as seen in previous unlock events. The historical pattern suggests that a decline of at least 10% is possible, potentially pushing the price below $1.1. Investors should closely monitor the situation and consider the potential impact on their holdings.
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