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Optimism (OP): User Volume, Transactions Have This Message for Investors

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Sep 21, 2022

Optimism’s price has seen challenges replicating the bullish move of last year. OP has struggled to remain afloat since its dip from the $2.5 all-time high, hovering below the $1 value area during this publication.

Nevertheless, the past few months had PO forming reliable support as prices noted a 6% surge. Nonetheless, it created a region of interest for investors and buyers.

Sensing ‘Optimism’

Meanwhile, Optimism has remained somewhat average in volatility compared to other digital coins. So far, the digital token has lost 10.8% to explore the $0.97 mark. However, recovery could be on the cards as Coinmarketcap data shows the altcoin gained 6% within the past 24 hours.

Meantime, the blockchain’s total value locked (TVL) stood at around $543 million by July end. However, September’s TVL increased because of increased liquidity into DeFi (decentralized finance) by investors. The number swayed at about $836 million during this writing, following a 2% increase within 24 hours.

The L2 Optimistic Rollup platform displays some beneficial keynotes to back the highlighted surge. Messari’s recent insight highlighted the same. Optimism’s core component, the Token Governance Fund (fund from OP holders directed to incentivize the projects’ sustainable growth), witnessed an attractive number.

It distributed 42M OP coins via the Governance Fund to sustainable projects within the Optimism blockchain. That aims to attract established applications and builders on Ethereum to switch to Optimism.

Moreover, they allocated 60% of the distributed funds to the liquidity incentive programs, which soared the network’s TVL dramatically (as mentioned above). Nevertheless, there’s a chance for more growth. More than 20 million OP tokens await release via renowned protocols like Uniswap, Beethoven X, Chainlink, Hop, Uniswap, and Synthetix.

Aftereffects

Indeed, the platform introduced multiple incentive/rewards programs, but did everything play out as expected? Consider transactions and user growth metrics in that context. The preceding airdrop farming soared Optimism’s number of transactions and users.

While both indexes dipped after the airdrop activity peak in June, the OP incentive programs shifted fortunes. The graph seems to math activity surge on the platform on a monthly chart.

Feel free to share your thoughts in the section below.

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