Optimism’s growth on this front could strengthen OP in the days to come
- Amidst the volatility of the crypto market, OP tokens surged by 42% over the last month, thus surpassing other major currencies.
- Base Chain popularity, increased activity, and positive sentiment contribute to OP’s positive trajectory.
The cryptocurrency markets have weathered turbulent times over the last few months with prominent assets like Ethereum [ETH] and Bitcoin [BTC] experiencing corrections. Yet, in the midst of this, one token has demonstrated remarkable resilience, which was Optimism[OP].
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OP’s impressive ascendance
While most major cryptocurrencies underwent corrections, OP’s price chart showcased a different story. Over the last month, the OP token surged by 42% as per this tweet from Messari. Furthermore, the altcoin outpaced rivals like HBAR and SOL, which registered gains of 28% and 9% respectively. Furthermore, the surge in price could also be attributed to the rising interest in the Base chain.
The growth of Base Chain, an Ethereum Layer 2 (L2) chain developed by Coinbase in collaboration with Optimism, holds significant implications for the Optimism protocol. This L2 solution witnessed multiple milestones, with 85.66k daily active addresses, even though it experienced a 39% decrease from its peak.
Daily transactions, though now 73% lower than their All-time High (ATH), reached 611.35k, highlighting a substantial activity trend. Although total value locked (TVL) dipped from $41.2 million to $24.2 million, an upward trajectory persisted on all fronts for the protocol.
Interesting data to keep on @BuildOnBase this week:
– ATH of 85.66k daily active addresses, -39% from the highs.
– Daily transactions reached 611.35k and are now -73% from ATH.
– TVL went from $41.2m to now $24.2m.
Despite activity being below its peak, there is an uptrend. pic.twitter.com/mcbJi5YDh1
— Artemis (@Artemis__xyz) August 7, 2023
The Optimism protocol also demonstrated vigor, with a 57.4% surge in daily user activity and an impressive 64.3% revenue increase in the past month. Developmental strides were evident, as core developers expanded by 67.7%, and code commits grew by 3.8% according to token terminal’s data.
Mixed Sentiments in the Social Sphere
In terms of the social sector, Optimism witnessed both positives and negatives. While social mentions and engagements dipped by 76% and 38.7% respectively in the previous month, an encouraging trend emerged in the form of weighted sentiment.
This suggested that positive comments outweighed negative ones on the social front. Thus, indicating a more favorable perception of OP within the community.
Amidst this growth, OP’s price recently underwent a 2.23% correction in the last 24 hours, settling at $1.70. As a result, the Market Value to Realized Value (MVRV) ratio experienced a substantial decline.
This suggested that most profitable addresses holding OP had sold their tokens. The rest of the holders do not have much of an incentive to sell their holdings as they were less likely to gain a profit through those transactions. This suggested a further decline in price might be unlikely.
Realistic or not, here’s OP’s market cap in BTC’s terms
Nonetheless, the number of token holders continued to rise, suggesting ongoing interest from investors.