The native token of Optimism, OP, is taking a significant hit among the top 50 cryptocurrencies, plunging by as much as 10% in the week leading up to a substantial token unlock event. According to Token Unlocks, a tokenomics platform, approximately 24.16 million OP tokens, representing around 3% of the circulating supply, will be unlocked on September 30.
This impending unlock could introduce over $30 million OP tokens into the market. Out of this, $15.49 million is earmarked for core contributors, while $14.26 million is allocated for investors. Token unlocking events occur daily in many major cryptocurrency projects, with teams often opting to release tokens rather than flooding the market immediately and gradually. However, these events tend to exert downward pressure on prices as the new token supply becomes available for sale.
The OP token trades flat for the day, hovering at $1.26. This follows a brief 3% rally observed in the past 5 hours, according to CoinGecko’s price data.
On September 21, Optimism made headlines by announcing its intention to sell $160 million worth of OP tokens to private sellers as part of a planned sale. This strategic move aims to further bolster the project’s financial backing and enhance its development efforts.
On September 19, Optimism initiated its third airdrop, distributing 19.4 million OP tokens to over 31,000 addresses participating in delegation activities related to the network’s decentralized autonomous organization (DAO), the Optimism Collective. This move underscores Optimism’s commitment to fostering community engagement and building a strong ecosystem around its technology.
As the unlock event looms on the horizon, market participants will closely monitor how the release of OP tokens impacts the price dynamics of the cryptocurrency. Historically, such events have often triggered short-term price volatility, making it imperative that investors exercise caution and stay informed about the latest developments in the Optimism ecosystem.