Optimism, a Layer 2 scaling solution for Ethereum, had a supply shock that was due to happen on 30th of May of 2023. A staggering amount of tokens were released for both team and investors. This resulted in an astronomically high supply shock of 130%, causing a sudden increase in circulating supply. The supply shock area is marked by a red line, with 130.8% at the tip of it. This shows how the price behaved before and after the unlock happened.
Taking that into consideration we see that the market anticipated the unlock before it happened, causing a slow decrease in price before, and a sharp decrease in price after the big unlock. As always there could have been other reasons causing these sharp price fluctuations, but thinking that it is a coincidence with all of the projects that we are about to show is irrational.
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