The Optimism team announced the issuance of tokens worth approximately $180 million. Following this, the altcoin price fell below the $1.30 region. On-chain analysis gives an idea about possible price movements in the coming days. Crypto analyst Ibrahim Ajibade explains the impact of the development on the OP price.
Team announces $180 million token issuance
This week the Optimism (OP) team announced an airdrop of 19 million OP tokens to private community participants. It also announced a private token sale of approximately 116 million tokens. The current market price of OP is $1.32. Accordingly, the 19 million OP tokens released on Monday are worth approximately $25 million. Meanwhile, the total value of the 116 million private token sale is $153 million. This brings the value of the new tokens issued to $178 million.
New addresses of the altcoin project broke a record
Meanwhile, on-chain data shows Optimism attracted a record number of new user accounts this week. It also reveals that the community is primed for generosity. A few days before the airdrop, on September 15, Optimism registered 90,604 new wallet addresses. Santiment data shows that Optimism registered up to 90,000 new users in the most recent 24 hours.
Optimism Network Growth | Source: SantimentNetwork Growth tracks the number of new wallet addresses created daily on a Blockchain network. This provides a rough estimate of the users participating in the network. Typically, this increase in Optimism’s user acquisition means that the underlying OP token is attracting new demand. The timing of the Network Growth boost reflects many of the new entrants’ attempts to participate in the recent $25 million airdrop. If a significant portion of these people stick around to make economically viable transactions, it is possible that it will have a permanent upward effect on the OP price.
Altcoin airdrop beneficiaries choose to HODL
The Optimism team announced that beneficiaries of the $178 million private OP token sale are subject to a two-year lock-in period. But on a more positive note, the 31,000 community participants who benefited from the $25 million OP airdrop also chose to HODL. Since the airdrop was distributed on September 18, Optimism investors have moved millions of OP tokens from exchanges. The IntoTheBlock chart below shows the negative trend of OP Stock Net Flows since September 18.
Optimism Network Growth. Source: IntoTheBlockStock Exchange Net Flow evaluates the difference between total stock market deposits and withdrawals. Negative values of exchange Netflow mean that investors are withdrawing more tokens from exchanges for long-term self-custody than deposits made by traders looking to explore short-term profit-making opportunities.
The chart above shows that between the airdrop on September 18th and September 22nd, the total amount of OP Exchange Reserves dropped by 5.2 million tokens. This reveals that many Optimism airdrop beneficiaries want to HODL rather than sell immediately. These bullish indicators, combined with the parabolic increase in network growth, will likely see the altcoin price consolidate around $1.30 in the coming days.
OP price prediction: $1.50 is the potential target for the altcoin
Meanwhile, from an on-chain perspective, if Optimism airdrop beneficiaries continue to HODL, it is possible that reduced exchange supply could potentially push OP above $1.50. Global Price In-Profit/Loss (GIOM) data, which shows the purchase price distribution of existing altcoin holders, also confirms this bullish thesis. If OP breaks the initial resistance at $1.34, the bulls are likely to ride the wave towards $1.50.
As you can see below, there are 96,170 addresses that purchased 811,710 OP tokens at an average price of $1.48. These are the biggest hurdles that could prevent the bulls from reclaiming $1.50. However, the situation is different if new participants and OP airdrop beneficiaries continue to HODL. In this case, a bull rally is likely to surpass $1.50.
OP GIOM data. September 2023. Source: IntoTheBlockConversely, if the OP price falls below $1, the bears will likely take control. However, 94,400 addresses have purchased 2.4 billion OP tokens at a minimum price of $1.04. As the most effective set of optimism holders, they will likely avoid a downward trend. However, if the altcoin price fails to hold steady at this vital support level, it is likely to drop below $1.
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