Connect with us
Active Currencies 14281
Market Cap $2,486,732,664,654.60
Bitcoin Share 51.98%
24h Market Cap Change $-0.70

Why Optimism’s OP Stack may have a bigger role to play now

2min Read

Optimism’s OP Stack could add massive revenue to the OP treasury in the long run. Here’s how…

Why Optimism's OP Stack may have a bigger role to play now

Share this article

  • Optimism’s OP stack’s growing roster may provide a consistent revenue stream for the protocol
  • Despite the soaring revenue, OP token failed to see green

Over the past year, the Layer 2 landscape has seen a notable surge in competition. At the onset of 2023, Arbitrum held a prominent position within the sector, leading many to cast doubt on the prospects of Optimism [OP]’s future success. As the dominance of Arbitrum became apparent, skepticism around Optimism’s potential arose.

Is your portfolio green? Check out the Optimism Profit Calculator

OP Stack could have a positive impact

However, Optimism’s OP stack may provide the protocol with a competitive edge in this sector. In fact, recent data revealed an impressive roster of projects and enterprises, including notable names like Coinbase, Binance, Debank, Celo, and Worldcoin, who are actively constructing their own Layer 2 solutions using Optimism’s OP Stack.

Coinbase’s Base network has already generated an impressive $1.5 million in revenue within the month. Extrapolating this figure, assuming revenue remains constant, results in an annualized revenue estimate of approximately $45 million, according to The Defi Investor’s data,

A significant portion of this revenue, specifically 10% of the Base revenue, would contribute to the Optimism treasury, amounting to a substantial $4.5 million. With the potential for Base’s growth trajectory to continue, this sum could conceivably exceed $20 million during the forthcoming bullish market cycle.

Source: token terminal

This projection signifies a remarkable $20 million revenue stream exclusively attributed to Optimism, courtesy of Base.

Moreover, it’s important to note that every additional Layer 2 entity that integrates Optimism’s Superchain will also allocate a portion of its earnings to the OP Treasury. This illustrates the broader financial benefits that stand to be reaped by Optimism as its ecosystem expands and diversifies.

Additionally, according to Token Terminal’s data, the accumulative revenue generated by Optimism amounted to $4.8 million. Despite seeing a decline of 1.8% in daily active users, the protocol continued to grow in terms of revenue.

Source: token terminal

How is the OP token doing?

However, OP did not see the same level of growth. Over the last few days, the price of the OP token has fallen materially, with the same trading at $1.524 at press time. The decline in price was accompanied by falling network growth, which implied that new addresses are starting to lose interest in the token.

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

The lack of interest from new addresses could be one of the reasons behind OP’s recent price correction.

Source: Santiment


Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.