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.
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