OP, YGG Feeling Sell-Side Pressure as Unlocks Loom

DYDX also has a large release of tokens scheduled but is not experiencing the same pricing pressure.

AccessTimeIconApr 23, 2024 at 10:00 a.m. UTC
Updated Apr 23, 2024 at 10:03 a.m. UTC
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  • OP, YGG, and DYDX have scheduled unlocks this week, where previously unavailable tokens will be released into the market.
  • While OP and YGG are down against the CD20, DYDX seems to be less affected.

Ethereum Layer 2 solution Optimism's native token OP and Yield Guild Games' YGG token were both in the red during the Asia afternoon trading day, as both tokens have unlocks scheduled for later this week.

In the digital assets world, unlocks refer to the scheduled release of a specified amount of the project's tokens that were previously locked to prevent team members from dumping on retail investors once they get listed on an exchange.

These unlocks increase liquidity and are generally viewed as a bearish signal, although some analysts argue that they merely amplify the current market trend.

OP is down 3.5% while YGG is down 3% in the last 24 hours, according to market data.

In comparison, the CoinDesk 20 (CD20), a measure of the most liquid digital assets, is flat.

According to market data from Token Unlocks, Optimism is scheduled to unlock 2.3% of its OP token (worth $24.16 million) in the coming days, while YGG's next unlock will push an additional 5.3% of its circulating supply onto the market, worth $16.7 million.

In the last 14 days, OP is down 24%, while YGG is down approximatley 32%.

Meanwhile, DYDX is scheduled to unlock 10.7% of its circulating supply on May 1, worth around $78 million, according to Token Unlocks. Its token doesn't appear to be feeling pressure from the upcoming unlock as it's only down 1.2%.

Edited by Sandali Handagama.


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