This New Development Could Stop The Optimism (OP) Price Dead In Its Tracks

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

After completing two rounds of airdrops already this year, the Optimism network has moved on to its third airdrop. This time around, the network is looking to reward loyal Optimism users who have delegated their OP to be used to participate in governance on the network.

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

The requirement was to have delegated OP tokens between January 20 to July 20 to receive the airdrop. To sweeten the pot, the airdrop applies a 2x multiplier to those who had delegated their tokens to individuals who were active voters.

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

What’s next?

Eligible addresses are in the process of receiving OP for Airdrop #3.

There is no need to claim this airdrop. Do not interact with any site asking you to do so.

If you missed out, don’t worry—19% of the total initial supply of OP is dedicated to airdrops.

— Optimism (_) (@optimismFND) September 18, 2023

The value of the total OP tokens being distributed in the third airdrop comes out to around $26 million. This means that $26 million worth of tokens are making their way into the open market. Only half of the participants selling their allocation could see a $13 million selling pressure on the price of the digital asset.

Now, if there is not enough demand to suck up this new supply, then the sellers will win and the OP price will drop drastically. This is already being manifested in Optimism’s performance in the last day which is already moving into the red with 0.24% losses. As more users receive and access their tokens, the selling pressure could climb rapidly.

However, given that users are being rewarded for holding and delegating their tokens, it could spark an urge to hold onto the OP tokens among those who receive them in an effort to qualify for future airdrops. In such a case, the OP price will hold firmly and shake off any bear pressure.

OP is already seeing increased interest which has translated to a 40% increase in its daily trading volume, according to data from CoinMarketCap. Its price is also holding tentatively at $1.40 as investors wait for the market to react.