- Optimism is unlocking around 155 million OP tokens on May 31.
- The current circulating supply of OP is around 155 million OP.
- The value of OP is likely to fall as unlocks begin.
Ethereum Layer-2 scaling projects have been in the spotlight for the past year or so. And rightly so – they’re the ones that are working towards bringing Ethereum to the masses.
However, Layer-2 tokens aren’t always the best investment opportunities. For example, Optimism’s OP token is about to unlock an enormous amount of tokens, which will likely suppress the price of OP.
A Massive Increase in Supply
Optimism is one of the leading Ethereum Layer-2 scaling solutions. Optimism’s native governance token OP is also one of the most popular ones among investors.
However, it may soon prove a costly investment. That’s because, on May 31, Optimism is unlocking around 155 million OP tokens, or about 3.6% of the total supply.
The current circulating supply for OP is 335,376,391, according to data from CoinGecko. This means the unlocked tokens will increase the supply by almost 100%.
The OP that will enter the circulating supply is worth about $240 million at the current OP price of $1.55. The tokens will be distributed to Optimism Labs seed investors and core contributors, according to data from TokenUnlocks.
For retail investors, this means that their holdings will likely lose value as at least a portion of the unlocked tokens will be sold, driving the price of OP down.
That’s because the largest investors in Optimism, a16z, Paradigm, and others are up by 10,285.8% on their investments, according to data from CryptoRank.
On the Flipside
- The early investors and employees might not sell their holdings in a bear market and wait for the next bull market to make an even bigger profit.
Why This Matters
Awareness of token unlocks is crucial to better position yourself as an investor and a trader.
Read more about the wallet that moved 2,365 ETH after 7.7 years:
Wallet That Bought 2,365 ETH for $730 Wakes Up After 7.7 Years
Read more about why Polygon zkEVM and zkSync Era TVLs are climbing:
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- Source: https://dailycoin.com/optimism-to-unlock-millions-of-op-tokens-what-it-means-for-you/
