- Optimism witnessed a rise in the number of transactions being made on the network
- Optimism was also witnessing significant growth on other fronts
As per a recent development, the combined transactions on Arbitrum and Optimism were getting closer to the overall transactions being made on Ethereum [ETH]. One of the reasons for the same would be the increasing number of transactions on the Optimism network.
Optimism + Arbitrum txs close to flippening Ethereum L1 (for good).
Yesterday, 691k txs on Optimism was an ATH. pic.twitter.com/YUOBmgNy1r
— mhonkasalo.lens (@mhonkasalo) January 8, 2023
A 559.14x hike on the cards if OP hits ETH’s market cap?
It’s only up and up
According to Dune Analytics, the number of Optimism transactions grew from 350k to 597k over the last month. This growth can be attributed to the spike in contract deployments on the platform, which increased from 3.6k to 5.8k in the same time period.
This implied that more users were using Optimism to deploy their smart contracts and suggested that there was a growing demand for the platform.
Source: Dune Analytics
Furthermore, retention on Optimism also increased according to Dune Analytics data. This meant that more users continued to use the platform after their initial interaction.
However, despite this growth in usage, the number of social mentions and engagements for Optimism declined. Additionally, December saw the number of social mentions decrease by 73.3% and the number of engagements decrease by 85.5% according to LunarCrush. This could potentially be a cause for concern, as it could indicate a decrease in the overall interest in the platform.
Despite the decline in social media engagement, sentiment toward Optimism remained positive. This was indicated by the increasing weighted sentiment for Optimism. A positive weighted sentiment implied that investors were confident about the long-term prospects of the platform.
Source: Santiment
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HODLr’s galore
Along with the growing positive sentiment, the Market Value to Realized Value (MVRV) ratio for the Optimism token also increased. Coupled with the increasing MVRV ratio, the long/short difference of the OP token was also positive. This suggested that long-term holders witnessed improvements in their portfolios.
Long-term investors are less likely to liquidate their holdings as soon as they start to make profits. This could be highly favorable for the Optimism token.
Source: Santiment
Additionally, the holders of Quest Optimism NFTs declined according to Dune Analytics. This indicated a decrease in the popularity of Optimism’s NFTs.
Source: Dune Analytics
While the decline in social media engagement and NFT usage on Optimism could be seen as concerning developments, the overall sentiment towards the platform remained positive.
Furthermore, the growth in transactions, contract deployments, and long-term holders suggested that the platform was still experiencing success.
At the time of writing, Optimism was trading at $1.131 and its price increased by 17.31% in the last 24 hours.
