Optimism, a rapidly growing layer-2 network, is preparing for a momentous event that could potentially affect its price. Developers will be unlocking tokens worth millions of dollars, which will be added to the current circulation of over 335 million OP tokens. At the time of writing, the token is trading at $1.53, giving it a market capitalization of more than $515 million.
The tokens released will be allocated to core contributors and investors, and will make up 9% of the total supply. Data shows that 1.5 billion OP tokens remain locked, with the last unlock event occurring in 2027. Often, token unlocks are seen as bearish for cryptocurrencies, as it increases the circulating supply and dilutes the investments of existing holders. This was seen earlier this year when dYdX postponed its token unlock event due to fears of further weakening.
Optimism is a layer-2 network that aims to optimize Ethereum transactions. It boasts a Total Value Locked (TVL) of more than $907 million, which makes it the 6th largest chain in the world, following Ethereum, Tron, BNB Chain, Arbitrum, and Polygon. Optimism powers some of the most popular platforms in the industry, including Uniswap, AAVE, Curve, Synthetix, and the upcoming cryptocurrency Worldcoin (created by OpenAI’s founder). Moreover, Coinbase is utilizing the technology to launch Base.
In light of the upcoming token unlock, Optimism’s OP price dropped to $1.53, the lowest since January 23rd. If you’re interested in buying Optimism, you can find instructions in the article below.
