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Assessing the effect of Optimism’s ‘NFT Quests’ on OP holders

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Assessing the effect of Optimism's 'NFT Quests' on OP holders
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  • Optimism NFT quests drive growth, usage, and volume.
  • Despite the growth, Optimism lags behind in TVL when compared to Arbitrum.

Optimism, a DeFi protocol, saw a significant increase in activity due to its NFT quest projects. The projects have resulted in impressive growth for all participants, with an average growth rate of 32%.

The success of these NFT quests contributed to the overall growth of the Optimism protocol, which increased by 56% in value.

Realistic or not, here’s OP’s market cap in BTC’s terms

Optimism Quests is an initiative that takes users through various apps on the platform, teaching them how to make use of these apps in exchange for commemorative NFTs.

Source: Dune Analytics

Optimism gets tough competition

Despite this growth, Optimism still lagged behind in terms of TVL  compared to Arbitrum, another decentralized finance protocol. The reason for this may be due to the fact that users are saving more ETH while using Arbitrum, as reported by Dune Analytics.

However, there was an uptick in Optimism’s TVL, and it may eventually overtake Arbitrum in the future. According to data from DefiLlama, the TVL of Optimism grew from $516 million to $705.29 million, representing a growth rate of 36%.

Source: Dune Analytics

While the price of the OP token continued to soar, there was a decline in daily activity.

Is your portfolio green? Check out the Optimism Profit Calculator

Notably, over the last month, the number of daily active addresses holding OP fell from 11,246 to 6,802.

Additionally, the development activity on Optimism also declined over the last week, suggesting that contributions from developers had fallen. This decline in development activity raised concerns about upcoming upgrades and updates on the platform.

Source: Santiment

Despite these challenges, Optimism has made several strategic partnerships that provide reasons for hope from OP token. In the last week, Optimism partnered with Sherlock DeFi and ArkhamIntel, two leading decentralized finance protocols.

These partnerships have the potential to increase the reach and usage of the Optimism protocol, driving more growth in the future.

The price of the OP token as of the time of writing was $2.25 and it had decreased by 3.21% in the last 24 hours, according to CoinMarketCap

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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