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The native token of Optimism, OP, is experiencing a notable decline among the top 50 cryptocurrencies, dropping by as much as 10% in the week preceding a significant token unlock event. As reported by Token Unlocks, a tokenomics platform, around 24.16 million OP tokens, which accounts for approximately 3% of the circulating supply, are set to be unlocked on September 30.
This forthcoming unlock could introduce over $30 million worth of OP tokens into the market. Of this amount, $15.49 million is designated for core contributors, while $14.26 million is intended for investors. Token unlocking events are commonplace in many leading cryptocurrency projects, with teams frequently choosing to release tokens gradually rather than inundating the market all at once. However, these events typically apply downward pressure on prices as the new token supply becomes available for purchase.
The OP token is trading flat for the day, remaining at $1.26. This follows a brief 3% increase noted in the past 5 hours, according to price data from CoinGecko.
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On September 21, Optimism garnered attention by revealing its plan to sell $160 million worth of OP tokens to private buyers as part of a scheduled sale. This strategic initiative aims to further strengthen the project’s financial foundation and support its development efforts.
On September 19, Optimism launched its third airdrop, distributing 19.4 million OP tokens to over 31,000 addresses engaged in delegation activities related to the network’s decentralized autonomous organization (DAO), the Optimism Collective. This action highlights Optimism’s dedication to promoting community involvement and establishing a robust ecosystem around its technology.
As the unlock event approaches, market participants will closely observe how the release of OP tokens influences the price dynamics of the cryptocurrency. Historically, such events have frequently resulted in short-term price fluctuations, making it essential for investors to remain cautious and informed about the latest updates within the Optimism ecosystem.
The post Optimism’s OP Token Faces 10% Drop Ahead of $30 Million Unlock appeared first on BitcoinWorld.
