Upcoming Optimism Unlock Threatens To Drag OP Below $1
September 26 2023 - 04:00PM
NEWSBTC
The Optimism native token OP is now in the line of fire with
millions of tokens set to be released into circulation. This
threatens the altcoin’s price which is already on a downward spiral
after carrying out its 3rd airdrop. Optimism Set To Unlock 24
Million Tokens In the latest iteration of its token unlock events,
the Optimism network is looking at over 24 million tokens being
unlocked and brought into circulation. On-chain token tracking
website Token Unlocks reports that the 24.16 million token is worth
approximately $30.7 million at current prices. Related Reading:
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Approved The token unlock event will take place on September 30,
which is less than four days from the time of writing. This will
see the equivalent of 3.03% of the total OP supply being released
into circulation at once. 24.16 million tokens set to be unlocked |
Source: Token Unlocks This is coming just one month after the
network locked an equivalent amount on August 30. Just like the
August unlock, the 24.16 million tokens are allocated to two
groups. 12.75 million tokens worth $16.19 million are going to Core
Contributors and 11.41 million tokens worth $14.49 million will go
to Investors. The Optimism unlock event is the largest of the over
$54 million in token unlocks expected to happen over the next seven
days. Other notable unlocks include SUI unlocking 4.9% of supply
worth $16.92 million and Yield Guild Games (YGG) unlocking 6.7% of
supply worth $2.55 million. Gauging The Impact on OP Price A good
way to figure out how the OP price might react is to look at
historical performance during similar events. In the case of the OP
price, there is no need to look too far back as the last token
unlock event happened only a month ago. On August 30, Optimism
unlocked an identical number of tokens and the price reacted
negatively to this new supply. OP initially held tight around the
$1.5 mark but once the unlock was completed, the price of the token
nosedived, dropping from $1.5 to $1.3 in the span of two days.
Related Reading: $200 Million In Crypto Lost As Mixin Network Comes
Under Attack This shows that token unlocks, especially with the
size of the upcoming Optimism unlock, are inherently bearish for
price. If the historical pattern holds, then the OP price could
easily succumb to the bears and threaten the $1 mark. At the very
least, the impact of this new supply could lead to a 10% decline,
which would put the OP price just above $1.1. Even now, OP is
already feeling the impact of the incoming bearish sentiment. Over
the last week, the price has plummeted more than 10%, bringing it
below the $1.3 resistance. OP price threatened with new unlock |
Source: OPUSDT on Tradingview.com Featured image from iStock, chart
from Tradingview.com
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