- Velodrome, a new DEX on Optimism, witnessed a 52% uptick in TVL.
- Despite declining transactions and testnet performance, positive indicators suggested an optimistic future for Optimism.
Recently, a new decentralized exchange (DEX) on the Optimism network called Velodrome witnessed a 52% uptick in its total value locked (TVL). This significant growth in TVL has also had a positive impact on the overall ecosystem of Optimism.
According to DefiLlama, the TVL of Optimism has grown from $525 million to $623 million over the last month, showing an increase of 18%. This growth in TVL is an indication of the increasing popularity and adoption of the Optimism network and its protocols.
Realistic or not, here’s OP’s market cap in BTC’s terms
Source: DefiLlama
The devil is in the details
However, it’s worth noting that the number of transactions on Optimism has been in decline, according to Dune Analytics. This could potentially affect the increasing TVL of Optimism in the future. The decreasing number of transactions might be an indication of a lack of liquidity or a lack of interest in the network.
Source: Dune Analytics
In addition, a recent update revealed that Optimism witnessed degraded performance on the Goerli Testnet. This could negatively impact the perception of Optimism.
The degraded performance could be a result of a lack of scalability or issues with the network infrastructure. However, it is important to note that the testnet is only a simulation of the mainnet and the performance on the mainnet might be different.
Other popular dApps on the Optimism network, such as Synthetix and Odos, have also seen a decline in activity. According to dApp radar, the number of unique active wallets on Synthetix fell by 16.85%, and for Odos, the unique active wallets fell by 37.39% during the same period. This decline in activity could be an indication of a shift in user preferences or a lack of new users joining the network.
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The state of the Optimism token, however, remained healthy.
HODLrs stay loyal
According to Santiment, the velocity of the OP token has declined, along with the MVRV ratio and the long/short difference. This indicated that the frequency with which OP was being held had decreased.
The growing MVRV ratio suggested that most of the OP token holders were profitable, while the increasing long/short difference implied that most of the addresses that were holding the token were long-term holders.
Source: Santiment
Despite the growing prices, long-term holders were less likely to sell their positions. Meanwhile, at the time of writing, OP was trading at $2.27, and its price increased by 13.30% in the last 24 hours.
Overall, while there are some concerns about the declining number of transactions and degraded performance on the testnet, the growth in TVL suggests a reason to be optimistic about the future of Optimism.
Lastly, it shouldn’t be forgotten that the new DEX on Optimism, Velodrome, could be a significant contributor to the growing ecosystem.
