Price prediction optimistic ahead of token unlock

Optimism, a layer-2 network that seeks to optimize the performance of Ethereum transactions, is preparing for a significant event that could impact its price. The developers are planning a token unlock event that will release millions of dollars worth of tokens onto the market.

According to TokenUnlocks, there are currently over 335 million OP tokens in circulation, with a market cap of over $515 million based on the current OP price of $1.53.

The developers will release an additional 9% of the total supply of tokens to core contributors and investors. Over 1.5 billion OP tokens are still locked, with the unlocking event expected to continue for another two years. The final token unlock is scheduled for 2027.

Token unlocks are generally viewed as bearish for cryptocurrencies as they increase the volume of tokens in circulation and dilute the holdings of existing investors. Earlier this year, dYdX postponed its token unlock event due to concerns about potential weakness in the token.

Optimism powers some of the most well-known platforms in the industry, including Uniswap, AAVE, Curve, and Synthetix. It also powers Worldcoin, the upcoming cryptocurrency created by the founder of OpenAI, and Blockchain is using its technology to launch Base.

In anticipation of the token unlock, the price of Optimism’s OP token has dropped to $1.53, its lowest point since January 23rd.

How to buy Optimism