February 22, 2024
This new development could stop Optimism (OP) price from being wiped out in its tracks

Optimism (OP) seems to be on a good recovery path so far in the month of September. This is due to the growing positive user sentiment around the Ethereum Layer 2 network. However, the latest development on the network could pose a threat to this recovery trend.

Optimism announces third airdrop

After completing two rounds of airdrops already this year, Optimism Network is moving towards its third airdrop. This time, the network wants to reward loyal Optimism users who have assigned their OPs to participate in governance on the network.

In its announcement, the team revealed that the latest version of its airdrop rewards system will see 19 million OP tokens distributed to 31,000 unique addresses on the network. The airdrop distribution began on Monday, September 18, with tokens sent directly to the wallets of eligible users.

OP tokens were required to be handed in between January 20th and July 20th to receive the airdrop. To sweeten the pot, the airdrop applies a 2x multiplier to those who assigned their tokens to individuals who were active voters.

For those who were ineligible to receive the latest round of airdrop, the team assured the community that more will be coming as 19% of the total OP token supply is dedicated to the airdrop.

Will this affect OP price?

The total value of OP tokens being distributed in the third airdrop is approximately $26 million. This means $26 million worth of tokens are hitting the open market. Only half of the participants who sold their allocations could see $13 million of selling pressure on the price of the digital asset.

Now, if there is not enough demand to absorb this new supply, the sellers will win and the OP price will drop drastically. This is already manifesting itself in the performance of optimism over the past day which is already going into the red with a 0.24% loss. As more users obtain and access their tokens, selling pressure may increase rapidly.

However, given that users are being rewarded for holding and handing over their tokens, this may create a desire among those who receive OP tokens to hold onto them in an effort to qualify for future airdrops. In such a case, OP price will remain strong and overcome any bearish pressure.

According to CoinMarketCap data, interest in OP is already surging, leading to a 40% increase in its daily trading volume. Its price also remains temporarily held at $1.40 as investors wait for the market reaction.

OP price recovers from fall. Source: OPUSDT on tradingview.com

source: www.newsbtc.com

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