Optimism: Bedrock yields positive results, more to come?

• The Optimism Bedrock upgrade reduced fees by over 40%.
• OP struggled to maintain the $1.3 price region as it added over 4% profit.

Optimism [OP] took a significant stride towards becoming a practical Layer-2 platform through its groundbreaking Bedrock upgrade, introducing numerous enhancements. Among these improvements, the most prominent was a reduction in fees. 

Read Optimism’s [OP] Price Prediction 2023-24

Now, several weeks have passed since this upgrade. Has it successfully attracted a surge of activity to the platform?

Optimism Bedrock crashes fees

Messari’s recent post highlighted the impressive results of Optimism’s Bedrock upgrade. Notably, fees have experienced a significant reduction of approximately 47%, accompanied by faster deposit times.

Also, gas fees per transaction have dropped by around 70%, establishing Optimism Mainnet as the most cost-effective Ethereum [ETH] Layer 2 solution for token swaps. Beyond fee reduction, the Bedrock upgrade has propelled Optimism closer to becoming a Superchain.

Has this impacted the network?

User count sees a boost

According to DefiLlama, the Bedrock upgrade has yielded positive results, particularly regarding user adoption. Following the upgrade, the platform witnessed a substantial user spike, surpassing the 100,000 mark.

Furthermore, the number of new users grew consistently in recent weeks, indicating sustained interest since the Bedrock upgrade.

As of this writing, the number of returning users had exceeded 60,000, demonstrating a favorable retention rate.

Although the Total Value Locked (TVL) initially experienced a decline after the upgrade, it has since resumed an upward trajectory. As of this writing, the TVL had surpassed $827 million.

Moreover, the DefiLlama chart depicted a noticeable decrease in fees, with the press time fees amounting to approximately $50,000.

Source: DefiLlama

Additionally, according to L2 Beats data, Optimism’s rollup has emerged as the second-highest TVL. Its TVL stood at $2.23 billion, capturing over 23% of the market share.

OP price trend

Analyzing the daily timeframe chart of OP showed that the Bedrock upgrade had a notable impact on its price dynamics. On the day of the upgrade, 6 June, the token experienced a remarkable surge of over 7% in value.

However, this gain was short-lived as the price declined, erasing the accumulated gains and registering a net loss.

Source: TradingView

Nevertheless, on 20 June, OP witnessed a substantial spike of 17% in value, reaching approximately $1.3. However, sustaining this price level proved challenging. As of this writing, OP was trading at around $1.36, indicating an additional gain of over 4% in value.

The Relative Strength Index indicated the overall trend was bullish, albeit with a weak inclination.

How much are 1,10,100 OPs worth today?

In addition to the price movements, the Bedrock upgrade has contributed to significant user growth, a resurgence in Total Value Locked (TVL), and a reduction in fees.

As the market continues to unfold, the subsequent weeks will play a crucial role in determining the extent of the Bedrock upgrade’s impact on OP’s performance.