The Layer-2 blockchain, Optimism, is poised to release a substantial sum of $36 million worth of tokens this upcoming Sunday. This impending event led to a 3.5% decrease in the price of its native token, the OP, on Tuesday. Such a scenario was previously observed during the last token release on June 30 which triggered a 10.7% downtrend in trading pairs involving the OP. However, this setback proved temporary as the token sprung back to life with an impressive 15% rally in the succeeding 24 hours.
The upcoming release is marked to constitute to about 3.56% of Optimism’s circulating supply, divided between core contributors and investors, who will be allotted $19 million and $17 million respectively, as per insights from token.unlocks.com. The most liquid market for Optimism exists on the exchange, Binance. Current observations indicate a 2% market depth circling at around $600,000 on both the purchase and selling front. As a result, a market order of the same amount would ordinarily affect a 2% price shift on that platform.
It’s worth noting, despite such temporary fluctuations, the Optimism token has demonstrated resiliency. The year-to-date performance of the OP showcases a solid 67% growth. This trend follows several integrations with key players such as Worldcoin and Base protocol by Coinbase. Both firms capitalized on the use of Optimism’s OP stack for their development objectives.
Currently, each Optimism token is quoted at $1.50, backing a market capitalization exceeding $1 billion. The circulating supply is confined at 16% as future token releases are strategically planned until August 2027. Curiously, these operational decisions and their unfolding dynamics can provide fertile ground for both ancillary speculation and investment evaluation. However, whether such short-term price instabilities would waver, the long-term positive trajectory of Optimism remains the subject under the industry’s microscope.
Source: Coindesk
