How Optimism ended up outperforming Polygon
- Optimism’s Bedrock update might have played a major role in increasing active addresses.
- OP’s daily chart was painted green, and market indicators were bullish.
Optimism [OP] witnessed a massive surge in adoption over the last month, while Polygon [MATIC] went the other way. This happened weeks after OP released its much-anticipated Bedrock update. Is the rise in adoption and usage because of Bedrock, or were other factors at play?
Read Optimism’s [OP] Price Prediction 2023-24
Optimism shines while Polygon drifts away
Polkadot Insider’s tweet revealed that OP registered a growth rate of 77% in terms of daily active users. Meanwhile, Polygon’s daily active users declined by 23% last month. A similar trend was also seen in daily transactions.
⛏️ Let's explore the top blockchains by monthly growth in Daily Active Addresses
?A high growth rate in Daily Active Addresses indicates a thriving and expanding blockchain ecosystem, highlighting its potential for long-term success and adoption
— Polkadot Insider (@PolkadotInsider) June 19, 2023
Additionally, Artemis’ data pointed out other positive metrics of Optimism. For instance, OP’s daily transactions were on the rise, reflecting higher usage of the network. OP’s DEX volume was also high, which was another optimistic signal.
Optimism’s Bedrock fueling this surge?
A possible reason behind this uptick could be the launch of the Bedrock update. This theory was compounded by OP’s rising price chart, as its value surged.
For the uninitiated, Bedrock reduces fees on the network and removes all gas costs associated with EVM execution when submitting data to L1. As transaction fees reduced, new users entered the network, causing a surge in daily active addresses.
How did OP react
The aforementioned achievements are also visible in OP’s price chart, as its price increased in the last 24 hours. According to CoinMarketCap, OP’s price went up by 5% in the last 24 hours. At the time of writing, it was trading at $1.17, with a market capitalization of over $753 million.
Positive sentiment around OP was also dominant in the market, as evident from Santiment’s chart. Additionally, its MVRV ratio also recovered substantially.
Realistic or not, here’s OP market cap in BTC‘s terms
Will the bull rally continue?
A look at OP’s daily chart gave more reasons to be excited, as the MACD displayed a bullish crossover. OP’s Relative Strength Index (RSI) also registered an uptick and was headed towards the neutral mark, further increasing the chances of a continued uptrend.
However, Optimism’s Money Flow Index (MFI) declined, which could be a cause for concern.