$587 Million Optimism Token Release Sparks Massive Market Turbulence!
Ethereum's Optimism scaling protocol is set to release tokens worth about $587 million into the market, potentially doubling its supply and leading to a 7% price dip due to anticipated sell-off from early investors.
Tokens valued at roughly $587 million from Ethereum's Optimism scaling protocol are due for market release on Tuesday following a scheduled unlock plan, causing a 7% dip in OP token prices. Unlocked tokens grant holders the freedom to sell or exchange at their discretion.
Currently, over 386 million optimism tokens belong to initial contributors and investors. This release will almost double OP's circulating supply, which is at 335 million tokens as of Tuesday morning.
Early investors, potentially enjoying substantial profits, might decide to cash in, creating a heavy sell-off. Therefore, immediate liquidity for OP token pairs on all exchanges barely reaches $10 million. A single $600,000 sell order could cause a further 2% price drop on Binance. Despite OP tokens experiencing a general decline since February, dropping from $3 to $1.5, bitcoin (BTC) and ether (ETH) saw a minimum 50% growth in the same period. OP's current trading price is $1.53 with a 24-hour trading volume of $103 million.
