2023 has been an inflationary period for many cryptocurrencies. There are also those who have entered the market with high inflation in the last 12 months. The most important thing to consider in long-term altcoin investments is token inflation. Many altcoins that are released into the market with low supply have not been able to return to their previous price levels while the circulating supply increases.
Optimism (OP) Coin Review
The price of Optimism (OP) dropped below $1.3 with the team’s announcement of issuing tokens worth approximately $180 million. This circulating supply increase consists of a 19 million OP token Airdrop to community participants and a private token sale of approximately 116 million OP tokens. In low-volume markets, such supply shocks have a significant negative impact on the price.
The price of OP Coin also responded to the news with a decrease as expected. With the current market price of $1.32, the supply that entered circulation on Monday is worth $25 million. Meanwhile, the total value of the 116 million private token sale is $153 million. This increases the value of the newly issued tokens to $178 million.
On-chain data is exciting. The Airdrop generated excitement for those who pay attention to network activity. As a result, we saw a rapid increase in the number of new wallets on the network. On September 15, Optimism recorded 90,604 new wallet addresses.
Data compiled by Santiment says that the last time there were this many new users was during the mainnet launch on May 31.
OP Coin Predictions
The Optimism team announced that those benefiting from the $178 million private OP token sale will be subject to a two-year lock-up period. This indicates that the impact of the $180 million selling pressure on the market will be limited, as initially understood. Current on-chain data shows that the distributed supply on Monday did not go directly to sales.
If investors continue to hold their assets instead of selling, we may see the price rise to $1.5 as the first stop. Of course, general market sentiment will also play a role in this. As we can understand from the declining volumes, the negativity around BTC has significantly weakened the risk appetite in cryptocurrencies.
In the opposite scenario, a test of $1 below $1.3 may occur.
