Optimism Token Unlock Causes Price Slump
In the world of cryptocurrency, the Layer-2 blockchain Optimism is preparing to unlock $36 million worth of tokens, causing a 3.5% drop in the price of its native OP token. This follows a previous unlock event that resulted in a 10.7% sell-off but was followed by a 15% recovery. This time, the unlock represents 3.56% of Optimism’s circulating supply, with $19 million going to core contributors and $17 million to investors.
Main Key Points:
- Optimism’s token unlock causes a 3.5% drop in price.
- The unlock represents 3.56% of circulating supply.
- $19 million is allocated to core contributors, $17 million to investors.
- Previous unlock event saw a 10.7% sell-off and a 15% recovery.
- Optimism has gained 67% since the beginning of the year.
Despite the short-term volatility, the optimism token has experienced a 67% increase in value since the start of the year. This growth can be attributed to partnerships with companies like Worldcoin and Coinbase’s Base protocol, who have used Optimism’s OP stack for their development projects. Currently trading at $1.50 with a market cap exceeding $1 billion, Optimism’s circulating supply is only 16% due to scheduled token unlocks extending until 2027.
Hot Take:
As the unlock of Optimism tokens takes place, the market experiences a temporary drop in price. However, the long-term potential of Optimism remains promising, as demonstrated by its partnerships and steady growth. Investors should keep an eye on this project for future developments and potential opportunities.
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