Avalanche (AVAX) and Optimism (OP) on the Verge of Large Token Unlocks
Over 9.5 million AVAX tokens (1.3% of total supply) are set to be unlocked on May 28, followed by 386.5 million Optimism (OP) tokens next week.
Avalanche (AVAX) and Optimism (OP) on the Verge of Large Token Unlocks
Read more: Notable Token Unlocks in May 2023
More than 9.5 million AVAX, valued at approximately $137 million, will be unlocked at 07:00 AM (Vietnam Time) on May 28. These tokens will be distributed to the Avalanche Foundation, strategic partners, and Ava Labs, as well as for airdrop rewards, according to Patrick Sutton, Avalanche’s Director of Communications.
The unlock is scheduled to occur in about 22 hours, Vietnam Time. Source: Token Unlocks
"Now, the Foundation has the authority to use and allocate these tokens," Sutton added.
AVAX is the utility token for paying gas fees within the Avalanche ecosystem and securing the network through staking. Ahead of this large token release, the price of AVAX has remained relatively stable over the past 24 hours, trading around $14.4. However, the coin has been on a downward trend compared to early May levels.
4h Chart of AVAX/USDT on Binance at 09:25 AM, 27/05/2023
"Token unlocks often create anxiety, but the upcoming Avalanche release has been planned for a long time, and most parties have already adapted and prepared," commented Lindsey Winder, CEO of token infrastructure firm Hedgey Finance.
According to Token Insights, there are currently 358.55 million AVAX tokens still locked. However, Sutton reflects a remaining locked amount of 96.06 million, about a quarter of Token Insights' statistics.
In addition to Avalanche, a significant unlock is also scheduled for the end of the month on May 31 from the layer-2 project Optimism, with 386.5 million OP tokens—valued at $591 million at current rates. This represents 9% of the total OP supply.
More than 386.5 million OP tokens, or 9% of the total supply, will be unlocked on May 31
The unlocked tokens will be allocated to early investors and the development team, with the total OP supply expected to continue growing through future distributions to these groups.
On June 6, Optimism will undertake a major upgrade called Bedrock to improve various technical aspects and optimize transaction fees for this layer-2 solution. Bedrock will also pave the way for another layer-2 solution using Optimism’s technology, Base, to launch its mainnet.
In recent days, the price of OP has shown little volatility despite the upcoming large token unlock, following the general sideways trend of the crypto market.
4h Chart of OP/USDT on Binance at 09:25 AM, 27/05/2023
