Optimism and Sui, two prominent crypto networks, are preparing for substantial token unlocks this week, collectively valued at $650 million. The token unlocks will result in a significant increase in the circulating supply of tokens for both networks.
Optimism, an Ethereum Layer 2 network, is experiencing the largest unlock event. On May 31, a total of 387 million tokens, worth $590 million, will be released. This represents 9% of the total token supply and will result in a 114% surge in the current circulating supply. The tokens will be primarily distributed among core contributors and investors. The unlock occurs just before Optimism’s Bedrock upgrade, which aims to enhance performance and reduce fees. However, the price of Optimism’s native token OP has decreased by 6% from $1.64 to $1.52 in the past 24 hours, ahead of the token unlock.
Sui, a Layer 1 blockchain, is set to unlock 61 million tokens worth $62 million on June 3. This will increase its circulating supply by 13%. The unlocking process will continue until November, when the circulating supply is expected to double, similar to Optimism’s upcoming unlock. Notably, Sui’s token unlock is unique as it involves a distribution method involving an airdrop to retail users as part of their community access program, with some tokens also allocated to the Sui Foundation.
Analyst Alex from Scimitar Capital highlighted that despite the OP unlock accounting for 114% of the supply and SUI’s unlock for 13%, evaluating the relative impact on price requires consideration of other complex factors.
Earlier this month, Avalanche unlocked 9.5 million tokens worth $139 million, representing 1.3% of its token supply. Surprisingly, this unlock did not have a significant impact on the token’s price.
