Optimism (OP) Continues to Dump Ahead of Imminent Token Unlock

OP is down 7.7% in the past 24 hours.

  • OP is down almost a double-digit percentage in the past 24 hours.
  • Optimism is set to unlock 155 million OP tokens, or 3.6%, of the total supply.
  • OP will probably go down further due to potential insider selling.

Ethereum Layer-2 scaling projects are all the rage right now. However, their native tokens aren’t necessarily the best investment options.

For example, that’s evident in Optimism’s OP, which has been dumping non-stop in the past few days due to a colossal token unlock in a few hours.

Optimism Sinks Ahead of Huge Token Unlock

Optimism’s native token OP has been experiencing continuous dumping in the past several days.

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OP is currently trading at around $1.37, down 7.7% in the past 24 hours, according to data from CoinGecko. The token is down around 13% in the past week.

Optimism (OP) May 30th to May 31st chart.
OP chart. Source: CoinGecko.

OP has been trending downward because of one thing – a vast token unlock. On May 31 at around 12 AM GMT, 155 million OP tokens, or about 3.6% of the total supply, will be unlocked.

That’s an almost 100% increase because the current circulating supply for OP is 335,376,391. The tokens will be distributed to Optimism Labs seed investors and core contributors, according to data from TokenUnlocks. 

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This also means that OP will likely go down even further as some investors and employees will want to sell their stakes.

On the Flipside

  • OP is still up by almost 60% since the start of the year.

Why This Matters

Knowing when token unlocks happen is crucial when making investment decisions.

Read more about the wallet that moved 8,000 ETH after 7.7 years:

ETH Wallet Dormant Since 2015 Moves 8,000 ETH in Minutes

Read more about the huge OP unlock:

Optimism to Unlock Millions of OP Tokens: What It Means for You

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Arturas Skur

Arturas Skur is a cryptocurrency news reporter at DailyCoin who covers Web 3.0 domains, DeFi, and Ethereum Layer-2s. With over five years of experience in journalism and public relations, Arturas brings his critical thinking and analytical abilities to deliver insightful news stories. In his free time, he enjoys hiking, playing with his dog, and reading.