The Optimism native token OP is now within the line of fireplace with hundreds of thousands of tokens set to be launched into circulation. This threatens the altcoin’s value which is already on a downward spiral after finishing up its 3rd airdrop.
Optimism Set To Unlock 24 Million Tokens
Within the newest iteration of its token unlock occasions, the Optimism community is over 24 million tokens being unlocked and introduced into circulation. On-chain token monitoring web site Token Unlocks studies that the 24.16 million token is price roughly $30.7 million at present costs.
The token unlock occasion will happen on September 30, which is lower than 4 days from the time of writing. This can see the equal of three.03% of the total OP supply being launched into circulation directly.
24.16 million tokens set to be unlocked | Supply: Token Unlocks
That is coming only one month after the community locked an equal quantity on August 30. Identical to the August unlock, the 24.16 million tokens are allotted to 2 teams. 12.75 million tokens price $16.19 million are going to Core Contributors and 11.41 million tokens price $14.49 million will go to Traders.
The Optimism unlock occasion is the most important of the over $54 million in token unlocks anticipated to occur over the subsequent seven days. Different notable unlocks embrace SUI unlocking 4.9% of provide price $16.92 million and Yield Guild Video games (YGG) unlocking 6.7% of provide price $2.55 million.
Gauging The Affect on OP Value
A great way to determine how the OP value would possibly react is to have a look at historic efficiency throughout comparable occasions. Within the case of the OP value, there is no such thing as a must look too far again because the final token unlock occasion occurred solely a month in the past.
On August 30, Optimism unlocked an similar variety of tokens and the value reacted negatively to this new provide. OP initially held tight across the $1.5 mark however as soon as the unlock was accomplished, the value of the token nosedived, dropping from $1.5 to $1.3 within the span of two days.
This exhibits that token unlocks, particularly with the scale of the upcoming Optimism unlock, are inherently bearish for value. If the historic sample holds, then the OP price may simply succumb to the bears and threaten the $1 mark. On the very least, the affect of this new provide may result in a ten% decline, which might put the OP value simply above $1.1.
Even now, OP is already feeling the affect of the incoming bearish sentiment. Over the past week, the value has plummeted greater than 10%, bringing it under the $1.3 resistance.
OP value threatened with new unlock | Supply: OPUSDT on Tradingview.com
Featured picture from iStock, chart from Tradingview.com