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 ?
How about the layer zero? They have good fundamentals. Also, they received higher investment from the VCs as well. So most crypto companies invest the money based on the project's unique solution. So layer zero provides an omni-chain solution. If the project has good funding, then users will be trying to use it for targetting the airdrops from the project team. so the project's transactions will increase.