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- 1 Optimism has been seeing a decline in the overall TVL, reaching nearly $700 Million.
- 2 OP token price is trading near $1.79, dropping over 12% in the intraday session.
- 3 The open interest (OI) of OP across all the exchanges has observed a decline from the high of $200 Million to $160 Million in the past few days.
Optimism is oEthereum’sof the largest layer 2 scaling soluereum with home to more than 180 applications. The protocol benefits from Ethereum’s security, which helps it scale using optimistic rollups. The protocol aims to achieve the lowest number of moving parts while building a scalable solution for Ethereum. It’s on a mission to create a new internet that benefits all and is owned by none.
Source: Optimism.io
Optimism had a problem for a long time: they were missing a core feature at the heart of its security design: “Fault proofs.” Fault-proofs are meant to keep Optimism-based layer-2 chains honest. They also help to prevent operators of a layer-2 chain from passing inaccurate transaction data down to Ethereum’s layer-1 ledger.
This technology has recently become the main component of Optimism. The protocol is home to more than 150 protocols, of which Synthetix, Uniswap, and Stargate are some of the most popular ones. Let’s have a look at the on-chain analytics of the Optimism protocol.
The Optimism Revenue Remains Stagnant While the Number of Active Users Decline
Optimism official token OP has a total supply of 4,294,967,296 tokens, of which 25.31% are currently circulating in the market. They have a total of 11,85,838 holders, which has declined slightly in the last few months. Meanwhile, as per the coin cap the top 10 token holders currently own over 66.5% of the total supply, while the top 100 holders have over 88.49%.
Source: TVL By Defillama
Optimism has a TVL of $700 Million, which has declined from the high of $1.03 billion. The Applications with the highest TVL on the Optimism protocol are AAVE V3, Synthetix, and Velodrome. They constitute more than 50% of the overall TVL of the protocol. The revenue per day of the protocol has also observed a slight decline and is currently near $20k
Source: Activeadress by Artemis
The overall active users of the protocol have remained relatively stagnant over the past few weeks, near 90k. Meanwhile, the number of returning users on the protocol is relatively higher than that of new users. The Optimism daily transactions are near 500k, declining from the highs of 1 Million. Let’s assess the price action scenario of the OP token price.
Will OP Price Rebound to the High of $3 Soon?
Optimism has a market cap of $1.9 Billion and is currently ranked 44th in the cryptoverse. The volume of the asset has observed a gain of 55% in the last 24 hours. OP token price is currently trading near the value of $1.77, with a drop of 31% in the previous month.
The OP price is currently in a weak bearish trend on the daily chart. It is trading below the 50 and 100 EMAs on the daily chart. The upside trend of OP can see a halt near the value of $2.1. Meanwhile, the asset price support can be near $1.5.
The RSI of the OP price is currently near 37, with a slight positive slope. The overall sentiment of the RSI is bearish in nature.
Will the OP Price Stay Bearish in the Near Future?
Optimism is currently observing an overall stagnation in the transaction and active addresses. The TVL of the protocol has also declined compared to other L2 projects. OP token price is currently in a bearish trend but can see a new high in the future.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or any other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
