Optimism’s decline: Fueled by waning memecoin craze?
- Network activity on Optimism was on a decline at press time.
- OP appeared to be well-positioned for a price rally.
Following the memecoin craze of April and May that led Optimism [OP] to register a 59% surge in its daily active addresses count, the Layer 2 (L2) network has seen its network activity decline since the middle of June, per data from Artemis.
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On the OP Mainnet, the number of unique wallet addresses sending on-chain transactions daily has trended downwards since 15 June. With 81,480 daily active addresses recorded on 2 July, this has since dropped by 45% in the last 19 days.
Likewise, daily transactions on Optimism have taken a hit since the beginning of July. According to data from Artemis, the month so far has seen a 22% drop in daily transactions count on OP Mainnet in the last five days.
In addition, the total volume of daily on-chain transactions completed on decentralized exchanges (DEXes) housed within Optimism fell on 30 June. Moreover, the last week caused a 59% decline.
Interestingly, despite the drop in DEX activity in the last seven days, the total value of assets locked (TVL) locked within the Optimism network rallied tremendously during the same period. At $850.2 million at press time, the network’s TVL jumped by 10% since 29 June.
OP has more to give
At press time, OP exchanged hands at $1.34. In the last week, the alt’s price oscillated tightly within the $1.34 and $1.36 price ranges.
While data from Santiment revealed a growth in OP’s network activity during the same period, this failed to translate into any significant positive price movements.
On-chain data showed that the count of daily active addresses that traded OP in the last week rose by 16%. Also, the number of wallet addresses created daily to trade OP tokens saw a 49% increase in the past seven days.
How much are 1,10,100 OPs worth today?
Although its price lingered in a tight range, OP’s key momentum indicators showed that token accumulation continued. For example, its Relative Strength Index (RSI) and Money Flow Index (MFI) were positioned above in uptrends at press time, above their respective center lines.
Likewise, the alt’s Chaikin Money Flow was 0.08. Also, in an uptrend at the time of writing, this indicated that the liquidity required to drive up OP’s price was being supplied.