Optimism will see its quantity of OPs in circulation more than double in the next 24 hours with a major “token unlock”, representing more than $591 million in additional capitalization. Will this event cause harm to the price of the asset?
Optimism: 591 million dollars of OP will be released
While Optimism, one of the layer 2 of Ethereum (ETH), is about to see a huge “unlock token” of exactly 386,547,056.64 OPthe asset’s price was down about 7% at the time of this writing.
And for good reason, the number of tokens in circulation is currently just under 335.38 million, which implies that the next 24 hours should lead to a doubling of this liquidity after the upcoming release.
In the context of fundraising, the tokenomics of a project provide periods of “vesting” of their token, so that the stakeholders do not sell all of a sudden. Afterwards, unlocks occur over months and yearsallowing them to take their profits if they wish.
On the graph below, we can precisely see the current unlocking and those to come. Of the quantity in question today, 204 million OP concern the development team, and 182.5 million the investors:
Quantity of OP tokens about to be unlocked
So, more than $591 million should be released at the current asset price. Based on this price, this would move Optimism from 90th to 44th in the market capitalization ranking on CoinGecko.
👉 To go further — What is Optimism (OP)?
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Will the OP price crash?
It is almost impossible to predict how the PO will behave during this unlocking, as the financial markets can be upset in front of a popular consensus.
An analysis by Unlocks Calendar estimates that with a daily volume of around $70 million, the market can hardly absorb such a large amount of tokens. As an indication, the current market depth shows that on Binance, $500,000 in volume is enough to lower the price by 2%.
Optimism’s main investors are Andreessen Horowitz (a16z), Paradigm and IDEO CoLab Ventures, and their average OP acquisition price would be just over $0.24a return on investment of 530%.
However, there are several factors to consider. First, an unlocking of tokens does not necessarily imply the sale of these. Even so, the actors concerned and particularly the developers of the project have no interest in causing the price to collapse.
Profits can however be taken, and this would even be wise, but speculating on the importance of the movement to come is more a bet than an analysis.
Note, however, that the OP has already dropped a lot in recent months, in losses of more than 53% since the all-time high (ATH) at 3.28 dollars on February 24. It cannot therefore be ruled out that part of the news is already represented in the courts.
👉 On the same subject — Optimism (OP): the number of addresses on layer 2 has increased by 45% since January
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Sources: Token Unlocks, Unlocks Calendar
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