The price of the Optimism (OP) token has slid 7% in the past 24 hours, ahead of a scheduled unlock of 580 million OP tokens. The unlock, which will take place on June 1, will double the supply of OP tokens in circulation.
The OP token is the native token of the Optimism Layer 2 scaling solution for Ethereum. Optimism allows Ethereum developers to deploy their applications to a Layer 2 network that offers faster transaction speeds and lower fees.
The OP token was first distributed to users who participated in the Optimism mainnet launch in October 2021. The majority of OP tokens are still locked up, and the June 1 unlocks will release the first tranche of tokens to the market.
The OP token price has been on a downward trend since its all-time high of $4.50 in November 2021. The recent slide in the price of OP is likely due to concerns about the upcoming unlock of 580 million tokens.
Some analysts believe that the OP token price could fall further after the unlock, as the increased supply could outweigh demand. However, others believe that the OP token price could rebound, as the unlock could attract new investors to the project.
Only time will tell how the OP token price will react to the upcoming unlock. However, investors should be aware of the risks associated with investing in a new token, and should only invest what they can afford to lose.
