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Optimism unlocks over 31 million OP tokens worth over $54 million

In this post:

  • Optimism Network, a layer 2 solution on Ethereum, recently unlocked over 31 million of its governance token, OP.  
  • More data suggested that multiple crypto projects will unlock over $750 million in tokens during July, increasing the industry’s token supply.
  • Sources suggest that the token unlocks could lead to price volatility or increased token adoption.

According to data from Token Unlocks, a token unlocks calendar platform; the Optimism Network unlocked 31.34 million OP tokens worth $54.53 million. Optimism’s token unlock event happened on June 30 at 12.00 AM UTC. Token Unlocks highlighted that the event released an equivalent of 2.88% of OP’s circulating supply.

CoinGecko data shows that the OP token is down 1.3% within the last 24 hours and 3.2% within the past 7 days. The OP token price is $1.75 at the time of writing.

OP underwent a similar trend in the previous unlock event on May 31, leading to a 2% price drop across all its pairs the following week. The current prices suggest that approximately $30 million will go to Optimism’s core contributors and $24 million to investors.

Also read: Can Runes recover after the recent market correction? 

The latest Optimism unlock event comes a few weeks after the network launched permissionless fault proofs on its mainnet on June 10. The launch aimed to provide a decentralized option to withdraw ETH and ERC-20 tokens without intermediaries. Optimism expressed its goal to become a fully decentralized network, with the release of permissionless fault proofs as Stage 1.

Optimism to unlock more tokens in July

Token Unlocks data showed that multiple crypto projects, including Optimism, have token unlocking events as their vesting periods end. Crypto projects introduced vesting as an incentive for token holders and a tactic to prevent markets from flooding with the tokens. Multiple sources reported that projects would unlock over $750 million in tokens in July. 

 

The next unlock event for Optimism will be on July 15 at 12.00 AM UTC. This event will release 10 million OP tokens into the market, worth $17.5 million at current OP prices.

Also read: 40% of South Korean university students are interested in crypto investing, study finds 

Token Unlocks
Source: Token Unlocks

Arbitrum, AltLayer, dYdX, Ethena, SUI, the Manta Network, Hashflow, the XAI blockchain, Immutable X, and more are among the top projects unlocking their tokens in July. These projects will release tokens worth from $1 million to over $100 million. Other projects are unlocking lower amounts of several thousands of dollars.

Token unlocks may affect the altcoin markets

As seen in the OP token price movement, many speculate how these unlocks influence crypto markets. According to a 6th Man Ventures (6MV) analysis, an upcoming venture capital firm, token unlocks over 1% of the circulating supply could lead to a decrease in token prices. The 6MV analysis also mentioned that projects with over 70% of their tokens already vested have more price stability than projects early in token vesting. 

Token unlocks may affect the altcoin markets
Source: 6th Man Ventures

CryptoSpace Ninja on X also touched on how the upcoming token unlocks could significantly impact crypto markets. The tweet mentioned that while some tokens may see price fluctuations, others might experience more adoption with the unlocks. However, the tweet encouraged investors to research before coming to any conclusions.


Cryptopolitan reporting by Collins J. Okoth

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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