Circulating Supply $ARB > 12.75% $OP > 16.69% Do these tokens really look similar? Think again! pic.twitter.com/KzJCK5ndPk — Token Unlocks (@Token_Unlocks) August 20, 2023
With a relatively close difference between the number of tokens intended for allocation to their respective stakeholders, OP and ARB may be poised for similar moves when the impact of the token distribution on price action manifests.
Specifically, both L2s plan to allocate their vested tokens to founders and teams, community and reservation.This development may not lead to sustained selling pressure because holders will not be in a rush to sell.However, for where investors are the recipients, there is expectation to sell, with the ensuing seller momentum likely to influence prices.
According to expert guides on capitalizing on Token Unlocks for profit:
Tokens are distributed to the protocol’s treasury or for further project development, which usually means that they will stay in the ecosystem and will not be sold immediately for a profit.Meanwhile, tokens unlocked and distributed to partners, advisors, or early investors on a large stake risk creating higher selling pressure.
OP/USDT 1-day chart, ARB/USDT 1-day chart
Meanwhile, the Optimism price shows signs of a sustained uptrend, unlike the Arbitrum price, which has slumped around 5%.
This disparity comes as ARB’s token unlocks many days out, while the OP holders only count days for the vested tokens to be unleashed.
Investors should therefore brace for a possible move in Optimism price, owing to the speculative nature of the crypto market that appears to be rising market prices before the unlock event.Ethereum development FAQs What is the next big Ethereum software update? After the Merge, the Ethereum community is looking at the Sharding upgrade next, which has been slated for sometime later in the year.The development can be summarized in four words, “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, widening the amount of data that can be stored or accessed.At the same time, all services running atop the Ethereum blockchain will enjoy significantly reduced transaction fees.
What is the difference between hard fork and soft fork? A fork is the splitting of a blockchain after developers agree and proceed to implement upgrades.The decision comes after these developers reach a consensus for a software upgrade.The ensuing part will see one part continue with the status as is, while the other one will proceed with new features combined with the former ones.A hard fork basically entails permanent divergence of a new side chain from the original one, while a soft fork is doing the same, only difference being that it is temporary.
What is EIP-4844? EIP-4844 is an improvement proposal for the Ethereum network.The upgrade promises reduced gas fees, which is a valuable offering considering the high transaction cost that continues to daunt crypto players.It has been a long-standing concern for the Ethereum network.
The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain.At the same time, it helps to reduce the transaction cost as everything becomes decentralized.What is gas in the context of Ethereum? Gas token is a new, innovative Ethereum contract where users can tokenize gas on the Ethereum network.This means they can store gas when it is cheap and start to deploy the gas once the market has shifted to the north.The use of Gas token helps to subsidize high gas prices on transactions, meaning investors can do everything from arbitraging decentralized exchanges to buying into initial coin offerings (ICOs) early.Share: Cryptos feed
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