Optimism token prices drop 7% before unlocking $580M and doubling token supply

Tokens worth more than $587 million of the Ethereum scaling protocol Optimism are set to be released into the open market on Tuesday as part of a planned unlock plan. This will cause a 7% fall in the prices of OP tokens. When tokens are “unlocked,” their holders are then able to sell or swap that token if they wish to do so.

The more than 386 million optimism tokens are currently held by early contributors and investors, and the move will nearly double OP’s circulating supply – which stands at 335 million tokens on Tuesday morning. Early investors are likely sitting on significant gains and could choose to take profits, contributing to immense selling pressure. As such, immediately available liquidity on OP token pairs across decentralized and centralized exchanges is under $10 million – and a single sell order of $600,000 could further decrease prices by 2% on Binance.

The unlock comes as OP tokens have been on a general downturn since February this year, sliding from $3 to $1.5, even as bitcoin (BTC) and ether (ETH) gained at least 50% in that period.

As of Tuesday, OP trades at $1.50, with a trading volume of $103 million over the past 24 hours.

The text was edited by Parikshit Mishra.

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