Optimism (OP) Token Plummets Over 70% Following Airdrop Details: What Happened?
Optimism (OP), the governance token powering Ethereum\'s layer-2 scaling solution, has experienced a dramatic price drop following its highly anticipated airdrop. OP is trading significantly lower after launching via a community airdrop on Tuesday. Many investors are asking: What caused this sharp decline?
OP Token\'s Price Plunge
The Optimism token experienced a loss of almost 70% from its initial $4.57 listing price shortly after the airdrop. Due to the dumping of these airdropped tokens, OP plummeted by nearly 73 percent over the last 24 hours. The asset was trading for a low of $1.27 at press time.
Airdrop Details and Token Allocation
The Optimism Network conducted a surprise token airdrop, distributing 11.7 million governance tokens to over 300,000 wallets. The initial allocation saw 10,368,678 OP sent to 54,723 unique addresses. This generous airdrop, intended to broaden adoption and increase competitiveness, has ironically led to significant selling pressure on the token.
Why the Price Drop After the Optimism Airdrop?
The primary reason for the massive drop in OP token price is likely due to a large number of airdrop recipients immediately selling their tokens. This "dumping" effect is common after airdrops, as many users are looking to realize quick profits. Speculation about a second airdrop, potentially fueled by increased on-chain activity during the Quest (reportedly associated with speculation of a second airdrop by the Optimism team), may have further contributed to the initial hype followed by the subsequent sell-off.
Optimism Network\'s Future
Despite the current price volatility, Optimism Network continues to take steps to broaden its adoption and increase its competitiveness. The platform recently conducted a surprise token airdrop Thursday, sending 11.7 million governance tokens to more than 300,000 wallets. Whether the price will recover remains to be seen, but the underlying technology and the broader Ethereum scaling solution it provides remain promising. Look for developments from Optimism in April 2025.