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 ?
Everything depends on the term of your investment. Projects with such tokenomics are not profitable to keep in your wallets for a long time, they should be periodically sold, using instead of BUY&HOLD strategy, the strategy of long-term trading. That is, you should sell tokens in every bullish cycle and then wait for the price to drop. In this way, some risks associated with token depreciation can be avoided. It is impossible to apply to altcoins the investment strategy that is applied to bitcoin, not all altcoins grow in value throughout their life, many die or are traded constantly at the same level.