Why Optimism’s growth has Worldcoin, Farcaster written all over it

• Optimism beat Base and Arbitrum to have the highest share of active addresses.
• Network Growth fell while Social Volume moved sideways.

AMBCrypto can confirm that projects like Worldcoin [WLD] and Farcaster were instrumental to Optimism’s [OP] increase in network activity.

Over the last few months, active addresses on Optimism’s Mainnet have had a 60% share when compared to other optimistic rollups.

According to data from IntoTheBlock, the rise in user activity was because of these two projects deployed on the OP Mainnet.

?Optimism Leads in Active Addresses!
Optimism Mainnet has frequently had over 60% of the number of daily active addresses out of the top optimistic rollups.
User activity on Optimism has increased as popular apps like WorldCoin and Farcaster have deployed on Optimism pic.twitter.com/W3rQChW7Nm

— IntoTheBlock (@intotheblock) February 11, 2024

Allowing deployment takes OP far

Worldcoin’s commitment to Optimism dates as far back as 2020. But at the time, Ethereum [ETH] scaling solutions were not yet mainstream.

However, when Worldcoin migrated fully to the network in July 2023, traction increased.  For Farcaster, its impact has been more recent.

For those unfamiliar, Farcaster is a decentralized social media protocol. Unlike most social platforms, the project’s focus is on user autonomy, interoperability, and privacy, and was developed on Optimism.

Though still in the Beta phase, some early users of the project have termed it a good alternative to X (formerly Twitter).

Farcaster’s introduction to the community comes as the demand for more user-controlled social platforms climbed.

According to Dune Analytics, Daily Active Users (DAU) on the protocol have seen an amazing increase. At press time, the total number of users was about 171,678.

Source: Dune Analytics

Other metrics including revenue, storage numbers, and revenue have also been growing. Consequently, an increase in Farcaster’s active users meant an increase in activity for Optimism, too.

AMBCrypto went on to check if this growth has affected other metrics regarding the L2.

Ups and downs, but that’s not all

The first metric we looked at was the social volume. According to Santiment, OP’s social volume had maintained a relatively good reading in the last 90 days.

This implied that search and interaction around the project have been relatively okay. In terms of Network Growth, the situation has been similar.

At some point, the metric hit new peaks. The increase during these periods suggests that adoption was increasing, and new addresses were making their first transactions on the network.

However, press time data showed that the Network Growth had fallen.

Source: Santiment

Should the Network Growth continue to decrease, OP’s dominance among the rollups might also shrink.

However, if the number of new entrants into the network does otherwise, the 60% active users’ share might increase.  When it comes to OP’s price, not much has happened in the last 24 hours.

Realistic or not, here’s OP’s market cap in WLD’s terms

But data from CoinMarketCap showed that the price increased by 16.41% in the last seven days. As of this writing, the value of OP was $3.52.

In the meantime, OP’s price might gain from an increase in active addresses, as it could serve as a bullish indicator for the token.