A16z Purchased $90 Million Worth of optimism Tokens, OP Price Increased by 13.5%
According to recent reports, venture capital giant Andreessen Horowitz (a16z) has shown interest in Ethereum Layer-2 platform Optimism and purchased $90 million worth of OP tokens. Optimism (OP) price is up 13.5% in the last 24 hours, defying the broader market downturn and is currently trading at $2.65 with a market cap of $2.77 billion.
a16z Secretly Catches Optimism Tokens
Interestingly, last month on March 7, the Optimism Foundation announced that it had sold 19.5 million OP tokens worth approximately $90 million to an undisclosed buyer. These tokens were provided from a pool of 30% of the OP’s original treasury designated for the foundation’s first operational budget.
Sources familiar with the matter told Unchained that a16z’s OP token purchase comes within a two-year vesting period amid strong developmental activity in the Optimism ecosystem, including an increase in Optimism’s use of the OP Stack.
Investors participating in token earning periods often provide purchases at a discount compared to the current trading price of the token.
Optimism’s OP Stack offers Layer 2 blockchain developers the opportunity to use open source technology to deploy their mainnets. Recently, Optimism reached a major milestone when the developers of the Celo blockchain selected OP Stack to launch the blockchain’s highly anticipated Layer 2 solution.
Speaking about the development, one of the sources said: “Interesting. Optimism has done pretty well. “They are still doing airdrops.”
A spokesperson for the Ethereum Layer-2 platform said: “We are excited by the energy and momentum that Optimism has achieved and are excited for the future,” without mentioning a16z’s participation in Optimism.
Interestingly, a16z also invests in crypto exchange Coinbase, which operates its own Layer-2 solution Base. Base and Optimism are potential competitors, and both are attracting major crypto projects to use their technology Stacks.
OP Price Rise Will Continue
The news that startup giant a16z purchased Optimism tokens attracted great attention in the altcoin. With the OP price rising over 13%, trading volumes also increased by 90% to $548 million, despite a broader sell-off in the market.
Following the recent Bitcoin halving event, OP discovered solid support around the $2 psychological threshold and formed a local bottom. This support catalyzed a positive reversal, allowing the asset to rise by 45% in two weeks to its current trading price of $2.63.
Currently, the cryptocurrency price is indicating a potential breakout from the overall trend line. A daily candle closing above this resistance trend line could indicate a shift in market dynamics in favor of buyers. Subsequently, the post-breakout rally could push the Optimism coin towards potential targets of $3.4, $4, and $4.78.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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