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Resilience Emerges: Crypto Giants Navigate $30M Token Unlock Amidst Dwindling Optimism

Sep 27, 2023 at 09:20 am

This upcoming Saturday, an unlocking event is scheduled for the OP token, during which approximately 24.16 million tokens, constituting 3% of its circulating supply and valued at roughly $30 million, will be made available to investors and contributors. Among this sum, core contributors will receive $16 million, while the remaining $14 million is earmarked for investors.

Unlocking events like this are a standard practice within the cryptocurrency realm. They are implemented to prevent early investors and insiders from inundating the market with a substantial influx of tokens all at once. However, once the tokens are unlocked, they become accessible for sale, often leading to a bearish sentiment and potential price declines. In some instances, investors may opt to sell prior to the unlocking event.

Over the last 24 hours, the OP token has encountered a 3.6% decline in value, according to data from Bitsday Indices. This performance trails significantly behind the predominantly stable crypto markets. The broader Bitsday Market Index (BMI) has only recorded a 0.5% downturn in the same period, while the Bitsday Smart Contract Platform Index (SMT), which encompasses the OP token, remains relatively stable.

This recent descent reflects a 10% reduction in value over the span of a week, positioning it as the weakest performer among the top 50 digital assets.

In a report earlier this month, Matrixport, a crypto services provider, foretold that alternative cryptocurrencies, known as altcoins, may encounter challenges throughout the year when compared to the dominant crypto asset, Bitcoin (BTC). They attributed a portion of this struggle to the influence of token unlocks on the market.

Read more: Bitcoin's Market Dominance Hits 50% and May Continue to Surge, Analysts Suggest

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