Optimism Braces for $587M OP Token Unlock Amid Dwindling Price

Ethereum Scaling Protocol is optimistically preparing for the token unlock scheduled for May 31st.

As such, more than 386 million OP coins will be issued, worth over $587 million at the current price, which is 9% of the total supply.

• The upcoming event also marks the first opening for initial contributors and investors, which is scheduled to take place exactly one year after the original token launch.

Optimism will unlock 9% of the total OP$ The show is tomorrow

This is the first opening for shareholders and primary investors

At the current token price, potential selling pressure is ~$600 million pic.twitter.com/g7sg1vXMkM

tokenterminal May 29, 2023

• The second major airdrop of Optimism was launched on February 9 of this year, distributing more than 11 million OP tokens to 307,000 unique addresses. OP’s price fell shortly after the fact.
• The influx of tokens into the open market this time could increase the selling pressure and trigger a potential bearish price move as well.
• It’s also important to note that early OP investors are currently sitting on big gains. Hence, if this group of owners starts dumping their tokens for a quick gain, the move could add to the selling pressure.
• OP has been trading under tremendous pressure already and is down more than 30% in the last month. Leading up to the event, OP fell to $1.52 after dropping more than 6% in the past 24 hours sending the asset down to a four-month low.
• The expansion protocol’s TVL has also seen a 21% drop since hitting an all-time high of $2.18 billion in mid-April to $1.72 billion currently.
• Despite these setbacks, the optimism get over it Rival Arbitrum in terms of revenue generation this month.
• Meanwhile, Optimism is set to undergo its highly anticipated Bedrock upgrade on June 6 at a time when competition in the second-tier space is heating up. The move is expected to lower transaction fees, provide greater security to the network, and improve compatibility with Ethereum.