After OP made a planned and private decision to unlock 18% of its treasury tokens, there was a noticeable drop in price, approximately around 6%. It's important to keep in mind that for OP to reach its all-time high (ATH), it would need to see a significant price surge. While this isn't impossible, it's not necessarily a bet worth placing.
Projects like OP, ALGO, AVAX, and DOT are all considered popular cryptocurrencies, but they share a common trait: they have inflationary tokenomics. This raises an important question – why invest in a project that steadily increases its supply by 7% each year for the next three years? Or one that releases large numbers of tokens, potentially leading to price manipulation by large holders?
In essence, even if a project boasts strong fundamentals, a solid team, and real-world value, it doesn't automatically translate into a great investment. This is particularly true for projects with highly inflationary token models. In such cases, reaching previous all-time highs can seem like an even more distant goal.
In summary, a project's fundamentals are only one piece of the investment puzzle, especially when dealing with highly inflationary tokens.
What do you think about this ?
Well if you are staking and your bag is part of the inflation and growing with it. And to top of that, usually inflation is happening very slow.
The individual coin price dropping a little doesn't matter, because it's the value of your bag of that coin that matters. If it loses value, only then you are losing money .
However high infraltion rate and price of one whole token dropping can be bad in other ways. As people who are doing technical analysis follow only the price dropping, they don't include the staking rate in their chart analysis, and most investors look only the surface and the chart/marketcap movement.
Also tokenomics are just one part of fundamentals.