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The value of Optimism’s native OP token is experiencing the most significant declines among the top 50 cryptocurrencies, dropping by as much as 10% this week in anticipation of a $30 million token unlock.
As per information from the tokenomics platform Token Unlocks, 24.16 million OP tokens, representing approximately 3% of the circulating supply, are set to be unlocked on Sept. 30.
The upcoming OP token unlock is scheduled for Sept. 30. Source: Token Unlocks
At the current market prices, this unlock will introduce just over $30 million worth of OP tokens into circulation, with $15.49 million allocated to core contributors and $14.26 million designated for investors.
Token unlocking events are a fundamental aspect of numerous major cryptocurrency projects, with many teams opting to gradually release tokens to the market rather than distributing them all at once. Generally, however, such unlocking events are perceived by investors as likely to exert downward pressure on prices, as a new supply of tokens becomes available for purchase.
The OP token price has seen a slight rebound in the last five hours. Source: CoinGecko
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Currently, the OP token is trading flat for the day at $1.26, following a brief 3% increase over the past five hours, according to price data from CoinGecko.
Related: Optimism transactions exceed Arbitrum, but what factors are driving the increase in users?
On Sept. 21, Optimism announced plans to sell $160 million worth of the OP token to private buyers as part of a scheduled sale.
Beginning today, there will be multiple transactions totaling around 116M OP tokens. We’re informing our community that these are planned transactions.
— Optimism (✨_✨) (@optimismFND) September 20, 2023
On Sept. 19, Optimism disclosed its third airdrop, distributing 19.4 million OP tokens to over 31,000 addresses that participated in delegation activities related to the network’s decentralized autonomous organization (DAO), Optimism Collective.
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