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OP, YGG Feeling Sell-Side Pressure as Unlocks Loom

Apr 22, 2024
    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.
During the Asian trading session in the afternoon, the prices of Optimism’s native token OP and Yield Guild Games’ YGG token dipped, as each token has upcoming events scheduled for later this week that have yet to be unlocked.

In the realm of digital assets, “unlocking” refers to the planned distribution of a predetermined number of a project’s tokens that had been previously withheld. This was done to prevent team members from selling large quantities on the open market and negatively impacting retail investors once the tokens became exchange-listed.

Unlocking these holdings enhances market fluidity and is often interpreted as a sign of pessimism, yet some experts contend that they merely intensify the prevailing market direction.

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.

Based on information from Token Unlocks’ market data, Optimism is set to release 2.3% of its OP tokens (equivalent to $24.16 million) in the near future. Furthermore, YGG is planning to unlock an additional 5.3% of their circulating supply, which translates to approximately $16.7 million.
In the last 14 days, OP is down 24%, while YGG is down approximatley 32%.

Currently, DYDX is planned to make accessible 10.7% of its current supply on May 1, which amounts to approximately $78 million, according to Token Unlocks. Despite this impending release, DYDX’s token seems unfazed as it has only experienced a minimal decrease of 1.2%.

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2024-04-23 13:15