Optimism: How Worldcoin, Coinbase helped to lure in users to the protocol
- Optimism’s TVL surged and was approaching the $1 billion mark.
- DEX volumes on Optimism declined, indicating the need for improvement.
Optimism[OP] has been slowly gaining momentum as activity on its protocol spiked. One reason for this could be the interest in Worldcoin, which led many investors and users to flock to the network.
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Adding the BASE
However, it wasn’t just Worldcoin that was bringing activity to Optimism. Coinbase also played a great role. Earlier this week, Coinbase’s newly developed chain called BASE, which is built on top of the OP Stack, experienced a significant surge in deployed contracts as their development network (devnet) went live.
During the week of its launch, there was a spike in the number of newly deployed contracts. Interestingly, this figure increased by an impressive 400% in a week. This surge in deployed contracts showcased the growing activity and adoption of Coinbase’s BASE chain following its recent launch on the devnet.
Due to the high activity on Optimims, other dApps on the protocol also witnessed significant growth.
The renewed interest in Optimims over the last month has directly benefited Velodrome Finance, a central trading and liquidity marketplace on Optimism. During this period, Velodrome Finance experienced a remarkable increase in market capitalization, rising by 63.8%. Additionally, the fees generated on the platform surged impressively by 364.7%.
Despite these significant gains, VelodromeFi was still approximately $100 million away from reaching its all-time high (ATH). Remarkably, the platform was currently generating even higher fees, showcasing its potential for further growth and profitability in this market environment.
Progress made on the protocol
As a result of these factors, Optimism’s Total Value Locked (TVL) experienced significant growth. Over the past few weeks, Optimism’s TVL surpassed the $900 million milestone and was gradually approaching the $1 billion mark. However, despite the upward trend in TVL, the volumes of decentralized exchange (DEX) on Optimism have been declining.
Realistic or not, here’s OP’s market cap in BTC’s terms
This decline in DEX volumes suggests that the protocol still has room for improvement in the DeFi sector. While Optimism’s TVL has been on the rise, addressing the challenges faced by DEX volumes will be crucial to further enhancing its position in the decentralized finance space.
Coming to the OP token, it was trading at $1.58 and had appreciated by 5.83% in the last 24 hours at press time.