Cryptocurrency enthusiasts have been closely following the developments of Optimism, a Layer 2 scaling solution for Ethereum that promises to reduce gas fees and increase throughput. Optimism has recently seen a surge in activity, as evidenced by the data from various on-chain analytics platforms.
Analysts Are Enthusiastic About Optimism’s Numbers
According to IntoTheBlock, a firm that tracks blockchain data, the daily transactions on the Optimism network have increased by nearly 300% in the past month, from around 10,700 to around 40,000. This indicates a growing demand for the Optimism platform, which allows users to interact with decentralized applications (DApps) on Ethereum without paying high gas fees or waiting for long confirmation times.
Data suggests a notable uptick in $OP transactions over the past month. Daily volumes have rebounded from a low of approximately 10.7k, currently fluctuating around the 40k mark.#Optimism pic.twitter.com/8aZK006gWx
— IntoTheBlock (@intotheblock) June 28, 2023
Another analytics platform, Nansen, reported that the Optimism network experienced a 67% increase in transactions after its “Bedrock” upgrade on June 6. The upgrade introduced several improvements to the network, such as faster deposit times, lower Layer 1 cost, and enhanced security features. The upgrade also paved the way for Optimism to become a “Superchain” of scalable Web3 networks based on its OP Stack software.
However, the rising activity on the Optimism network has not translated into a positive price performance for its native token, OP. OP is currently trading at $1.25, down by almost 7% in the last 24 hours and by more than 60% from its all-time high of $3.28 in February. OP has been in a downtrend since then, forming lower highs and lower lows on the daily chart.
The bearish death cross pattern, where the 50-day moving average crosses below the 200-day moving average, also confirmed the negative sentiment around OP.
The OP price may need to break above its key resistance levels and regain its bullish momentum to reverse its current trend. Alternatively, it may continue to decline further if the market conditions remain unfavorable or if new competitors emerge in the Layer 2 space. In any case, OP holders should keep an eye on the developments of the Optimism network and its impact on the OP token.
