Crypto networks Optimism and Sui are gearing up for significant token unlocks this week. On May 31st, Ethereum Layer 2 network Optimism will release 387 million tokens, worth $590 million, increasing its circulating supply by 114%.
Optimism Token Unlocks, source: TokenUnlocks
The tokens will be primarily distributed among core contributors and investors. This release precedes Optimism’s Bedrock upgrade, which aims to improve performance and reduce fees. However, the price of Optimism’s native token, OP, has already dropped 6% from $1.64 to $1.52 in the last 24 hours, ahead of the unlock.
On June 3rd, Sui, a Layer 1 blockchain, will see a much smaller unlock of 61 million tokens, worth $62 million, increasing its circulating supply by 13%. Token unlocks like this will occur regularly until November when the circulating supply will double.
Sui Token Unlocks, source: TokenUnlocks
Unlike Optimism, the tokens will be distributed to retail users as an airdrop as part of its community access program. Some tokens will also go to the Sui Foundation, as reported by a Twitter account named Alex.
To contrast, SUI’s unlock is a little different
SUI airdrop farmers are the people getting their tokens this week, rather than the team and investors
It should appear easier to pvp vs retail who cannot coordinate than it is vs investors and team
11/
— Alex (@thiccythot_) May 30, 2023
Although the OP unlock is for 114% of supply, and SUI is for 13%, other complex factors should be considered when evaluating the relative impact on the price for these events. This month, Avalanche unlocked 9.5 million tokens ($139 million), representing 1.3% of its token supply, without any significant impact on the token’s price.
These token unlocks will have an impact on the crypto market. Optimism’s token unlocks, in particular, is expected to generate considerable attention and interest. However, the true impact on the tokens’ prices remains to be seen. It is important for investors to carefully evaluate and consider various factors before making decisions regarding these tokens.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Read the full article here
