The crypto market faces a brutal week. And 2 altcoins out are about to face another round of dump close to Aug 21 and Aug 25. One of these altcoins might not see a massive crash and the other might give you a good entry point.
Which are these 2 altcoins? And what should you do? Let’s find out.
#1: Optimism (OP)
Optimism has towards the end of each month a token unlock event. There are actually two different unlocking events each month. So, what do we have? Each month, towards the end of the month, the project had these token unlocks:
- 17 million OP of team tokens.
- 15.2 million OP tokens of investors.
By popular request: you can now use the Optimism bridge interface to bridge any arbitrary standard ERC20 token to OP Mainnet. Here's how:
1. Head to https://t.co/7734egnTFC
2. Select the asset picker's custom tab and paste the L2 token contract address
3. Bridge away! pic.twitter.com/3VA6ssSKBf
— OP Labs (@OPLabsPBC) August 21, 2023
That’s 33.2 million OP tokens in total each month, or 3.37% of the total token supply. At the current price of $1.51, that’s worth around $50 million. As of 31st July, we see that only 16.69% of all OP tokens are unlocked. This monthly rhythm will keep going until 30 April 2026. That’s when all tokens are unlocked:
- Last month, in July, OP actually increased a bit in price after unlocking.
- We can observe the same pattern in June. The price went up and dropped a bit after the 4th of July.
- Towards the end of May, we saw a dump from $1.65 to $1.40.
- In April’s unlocking event, we witnessed a dump from $2.18 to $1.56 on the 12th of May.
- The end of March saw a minor dump, followed by a strong price increase.
And lastly, @pendle_fi has added to the growth of liquid staking derivatives on OP Mainnet with the launch of wstETH and rETH pools.https://t.co/ZazQNFOgh2
— Optimism (✨🔴_🔴✨) (@optimismFND) August 18, 2023
So, it looks like the August token unlocking event of OP may not have that drastic an impact on the price. There’s still enough hype and talk around Optimism to keep the price from dumping.
#2: Injective Protocol (INJ)
The second altcoins token we take a closer look at is the Injective Protocol. Their unlock events are almost every month. But we have good news. There are only two more unlocks going to happen. Thereafter, all their tokens will be in circulation.
1/ Injective today is releasing its largest tokenomics upgrade yet which can dramatically increase the amount of INJ burned weekly.
Now all dApps built on Injective can contribute to the $INJ burn auction with no limit on how much they can burn.https://t.co/VCoc2lSjaA
— Injective 🥷 (@Injective_) August 16, 2023
So, the second last unlocking event is on the 21st of August. 3.02 million INJ will unlock. That’s 3.02% of the total INJ token supply. Come the 21st of January 2024, the last unlocking event will hit Injective. This event will see 3.67 million INJ hit the streets. That’s the final 3.67% of their total supply. By that time, all 100 million INJ tokens are available.
However, let’s go back to the upcoming unlocking event. At the current price of $7.26, that’s around $22.43 million. That’s 3.6% of its market cap.
Recent Unlocking Events for INJ
But, let’s also look back at some recent unlocking events of INJ. For example,
- July 2023 saw a long slide after the release on the 21st. The price went down from $9.29 on the 21st to $7.86 on the 26th.
- May saw a similar price development. The price went from $7.29 on the 21st to $6.19 on the 25th.
- In February, we also saw a decline in price. From $4.17 on the 21st to $2.64 on the 10th of March.
Looking at this historical data, we can expect a price drop. However, the allocation is to “ecosystem development”. So, this means that most likely the team will be in control. As a result, I don’t expect the price to drop hard. If the team plans to sell these tokens, it will most likely be over a longer period of time.
In the last week alone, Injective:
🏅Launched INJ 2.0
🏅Integrated Trust Wallet
🏅Processed over 270M transactions
🏅Hit over 370K followers on Twitter
🏅Continued to grow the best ninja communityWhat will this new week bring?
— Injective 🥷 (@Injective_) August 21, 2023
So, if you’re looking for a good entry point into Injective, a few days after the 21st of August may be a good opportunity. Keep in mind that over the last year, INJ went up by 342%.
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