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Market Downturn? Not For Optimism: A16z’s Major OP Purchase Sends Price Skyrocketing By 9%

In a month marked by a challenging correction in the crypto market, Layer 2 (L2) blockchain protocol Optimism has emerged as a standout performer. Within the past 24 hours, Optimism’s native OP token skyrocketed by 9%, positioning it as the best-performing token among the top 100 cryptocurrencies. 

Behind this surge lies venture capital firm a16z, which has reportedly invested around $90 million in Optimism’s OP token, signaling further institutional support for the layer 2 protocol. 

OP Receives Major Investment

Sources familiar with the matter have revealed to Unchained that a16z has acquired a significant stake in Optimism’s OP token. 

The investment, which comes with a two-year vesting period, underscores a16z’s interest in the Layer 2 protocol and aligns with its growing involvement in crypto. Notably, a16z’s portfolio already includes crypto exchange Coinbase. 

The investment by a16z comes amidst notable activity and growth within the Optimism ecosystem. Optimism’s OP Stack has experienced increased usage, further validating its value proposition. The protocol’s ability to increase scalability and reduce fees on the Ethereum blockchain has also garnered significant attention. 

Optimism’s spokesperson expressed enthusiasm for the investment, acknowledging the energy and momentum surrounding the protocol. The partnership with a venture capital firm like a16z is expected to fuel further development and innovation within the Optimism ecosystem.

On March 7, the Optimism Foundation disclosed the sale of approximately 19.5 million OP tokens, valued at nearly $90 million, to an undisclosed buyer. 

These tokens were reportedly sourced from a 30% pool of OP’s original treasury, dedicated to the foundation’s working budget. Reports indicated that the buyer could delegate their tokens to third parties, enabling them to participate in Optimism’s governance.

The foundation clarified that, due to the private nature of the sale, specific details regarding the terms and purchaser were not disclosed. 

Key Levels To Watch For Optimism

Despite the recent surge in the Optimism ecosystem and its native token OP, the token still trades well below its all-time high (ATH) reached on March 6, 2024, currently down over 47% from that level.

However, OP’s trading volume has experienced a notable surge, indicating continued interest in the token. According to CoinGecko data, the OP trading volume has increased by over 113% compared to the previous trading day on April 30, amounting to nearly $600 billion in 24 hours.

Optimism

Key levels to monitor for the token soon include OP’s significant resistance at the $2.62 price mark and a potential retest of the $3 zone. 

However, a clear indication of a positive trend for the Optimism token would require a successful consolidation above the $3.92 zone, marking the end of the month-and-a-half downtrend structure.

Conversely, the $2.37 zone has proven to be a crucial support level for OP, as it has held for the past five days and prevented further price decline for the token. 

Digging deeper, the $2.25 mark is also a key support, with the most critical support level at $2.11. This level holds the key to Optimism’s macro bullish structure, as it initiated the token’s current uptrend.

Featured image from Shutterstock, chart from TradingView.com 

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Analyst: OP Is Undervalued But Will Skyrocket Because Of Coinbase And Base

Adam Cochran, a partner and professor, is bullish about OP, the native token of Optimism, the layer-2 scaling solution for Ethereum. 

Taking to X, Cochran is convinced OP is undervalued, pointing to the significance of Coinbase and the brand it has created over the years as a crypto exchange and investor in multiple products. In 2023, Coinbase backed the development of Base, a layer-2 scaling solution for Ethereum that uses Optimism infrastructure for its optimistic roll-up. 

OP Will Rocket Because Of CoinBase And Base

In coming up with this assessment, the investor highlights Coinbase’s vast user base and ability to drive retail adoption towards Base potentially. And, as aforementioned, since Base uses Optimism, the expected adoption spike will significantly boost OP from current spot levels. 

Cochran argues that the “power of discoverability” associated with Coinbase, a brand that facilitates billions of dollars in daily trading, will be crucial to Optimism’s success. This is particularly relevant when looking at OP prices when writing.

OP price trending upward on the daily chart | Source: OPUSDT on Binance, TradingView

When writing, OP is stable but up 220% from October lows. The token has been trending higher, benefiting from the broader crypto rally. Even so, though in an uptrend, OP has not reclaimed 2023 highs of around $4.2.

To drive the point home, Cochran compares how the BNB Chain blew up in the number of active users. In the last bull run, the chain had an active decentralized finance (DeFi) and non-fungible token (NFT) ecosystem. The BNB Chain’s popularity and soft landing is because the smart contracts platform is associated with Binance, the world’s largest cryptocurrency exchange. 

Further to the point, the success of Solana, the partner argues, lends its success to the now-defunct FTX. At its peak, FTX injected billions to fund the development of Solana. It was also actively involved in financing some of Solana’s active protocols. 

The Great Convergence Of Supportive Events

Presently, Coinbase is streamlining its operations, recently stopping support for Bitcoin, Litecoin, and other UTXO tokens via Coinbase Commerce. Their focus is on Ethereum-compatible tokens, which could provide hints that Coinbase Commerce might soon be integrated into Base.

From the protocol level, Ethereum plans to implement upgrades to make transacting on layer-2 platforms even cheaper. The Dencun Upgrade is scheduled for March and will see Ethereum enhance as part of its long-term scaling roadmap.

Optimism TVL | Source: L2Beat

L2Beat data on March 1 shows that Optimism has a total value locked (TVL) of $7.8 billion, roughly half that of Arbitrum. Meanwhile, Base has been rising up the rankings, commanding a TVL of approximately $1 billion.

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Optimism Price Up By 34% Today – But Investors Should Watch Out For This Sell Signal

Optimism price has been witnessing significant momentum over the past few days, becoming one of the top gainers in the market today. Thanks to this recent price growth, Optimism has seen its native token OP lay a serious claim to a place within the top 30 cryptocurrencies by market capitalization.

However, it seems that the Optimism price movement may soon be turning bearish following the appearance of a sell signal on the price chart. 

Indicator That Preceded 80% Rally Turns Bearish, Analyst Says

In a recent post on the X platform, crypto analyst Ali Martinez sounded the sell alarm for the OP token. According to the popular crypto pundit, the Optimism price might be in the best range for investors to cash in on their profits.

The reasoning behind this forecast revolves around the TD (Tom DeMark) sequential indicator. Based on Martinez’s analysis, the indicator is currently flashing a sell signal on Optimism’s 12-hour price chart.

The crypto analyst highlighted that a buy signal from the TD sequential indicator preceded a substantial surge in Optimism price earlier in December. And this adds even more weight to the possibility of a bearish turnaround following a sell alarm from the indicator.

Martinez advised investors to think about taking profits right away, given that the OP price may decline and mirror the size of the initial bullish upswing. This projection comes during an exhilarating positive run for OP, putting the altcoin’s bullish trajectory in jeopardy. 

Optimism Price And Network Growth

As of this writing, the Optimism price stands at $3.37, reflecting an almost 34% price increase in the past 24 hours. According to data from CoinGecko, the value of the cryptocurrency has soared by more than 55% in the past week.

The OP coin looks set to end the year as one of the 30 largest cryptocurrencies in the sector, with its market cap recently surpassing $3 billion. This positive performance of the token – in such a short time span – only underscores the increased rate of network growth.

According to recent data from IntoTheBlock, the Optimism network boasts more than 5.9 million addresses with a balance. This represents a nearly 400% surge from 1.2 million in January 2023.

Growth of this caliber and magnitude suggests increased confidence, adoption, and usage of the Optimism network. And if this positive trend is anything to go by, there is a chance the Optimism price won’t be down for long – if the current bearish projection does come true.

Optimism Price

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Optimism Price To Resume Bullish Trajectory To $3? Here’s How

The Optimism price appears to have struggled over the past week, with its recent bullish momentum seemingly waning. During the altcoin rally, the price of Optimism’s native token OP went from a low of $1.2 to a high of nearly $2.5 before experiencing a pullback. 

While OP has managed to preserve a majority of its recently accrued profit, the cryptocurrency seems to be finding it challenging to continue its bullish trajectory. And the latest on-chain revelation suggests that there might be only one thing in the way of the Optimism price rise to a new high.

OP Price To Soar By 26% To $2.70, Crypto Analyst Projects

Popular crypto analyst Ali Martinez, in a recent post on the X platform, disclosed his bullish projection for the price of Optimism over the next few weeks. This prediction revolves around on-chain data from IntoTheBlock, which is based on the density of investors who purchased the OP token at certain price zones.

Optimism Price

The chart above displays how the Optimism price zones around the current value look in terms of investor density. The size of the dot indicates the number of investors who bought the OP coin at each price range. Notably, the resistance or support at a price zone is more significant the larger the dot size of that price zone.

In his post, Martinez pointed out that the Optimism price is currently bouncing off a major resistance zone between $2.17 and $2.30. According to data from the analytics platform, roughly 27,000 addresses purchased a massive 45 million tokens within this range.

Martinez posited that the zone between $2.17 and $2.30 is one to watch out for, given the substantial buying activity within the price range. “A sustained close above could signal a bullish breakout, potentially propelling OP toward $2.70,” the crypto analyst said. This represents a more than 26% price growth from the cryptocurrency’s current value.

Optimism Price Overview

As of this writing, the Optimism price stands at $2.11, reflecting a 2.4% price decline in the past 24 hours. OP’s sluggish performance in the past day underscores the altcoin’s struggles over the past week.

According to data from CoinGecko, the Optimism price has barely changed in the past seven days. Although the cryptocurrency surged to a multi-month high of $2.46 earlier in the previous week, it has since faced some level of correction to trade around $2.10.

Nevertheless, Optimism still ranks amongst the top 40 cryptocurrencies in the sector, with a market capitalization of roughly $1.94 billion.

Optimism Price

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A Whooping 56% Of OP Max Supply Not Assigned, What Does This Mean?

According to Token Unlocks, a platform that tracks upcoming unlocking events, 56% of all the OP token maximum supply is in the to-be-discussed (TBD) allocation, meaning the community is yet to vote and determine where these tokens will be assigned to in the coming weeks or months.

This news is a curious development, especially for OP Mainnet, the team behind one of the most popular Ethereum layer-2 scaling solutions, and OP token holders. 

Billions Of OP Not Assigned

Token Unlocks notes that roughly 2.4 billion OP, representing 55% of the max supply, remains under the TBD allocation. So far, over 831 million OP, or slightly above 19% of the max supply, have been unlocked. 

OP TBD allocation | Source: Token Unlocks

This revelation also comes when OP prices have been trending higher, breezing past crucial resistance levels. At spot rates, OP is changing hands above September and October highs, temporarily retesting October highs. The bull bar of November 10 anchors the current leg up since it was accompanied by relatively high trading volume. 

OP price trending upwards on the daily chart | Source: OPUSDT on Binance, TradingView

Token Unlocks defines a TBD allocation as not assigned a release timing but will be subject to community voting. These tokens can be distributed for governance, Retroactive Public Goods Funding (RetroGPF), ecosystem funding, moved to advisers or partners, and much more.

RetroGPF is a funding mechanism that allows the protocol to support projects building solutions on its general-purpose layer-2 platform. Since it is retroactive, projects or developers don’t have to apply for funding in advance.

Usually, token unlocking releases coins initially locked or vested for a given time. Projects tend to employ this tactic to align the incentives of investors and that of the team. This also concurrently prevents early adopters from mass selling the coin, driving prices lower. Even so, since all specified unlocks are done publicly, transparency allows investors or traders to make informed decisions.

What Will Happen To OP Prices?

For the token’s Mainnet’s case, a big chunk of the max supply remains unassigned at spot rates, which is, as it is, supportive of prices. However, once these tokens are voted for, and the community decides the portion of the maximum supply that can, for instance, be distributed to advisers or used to fund ecosystem projects, then there is a tendency for prices to fall as the unlock date approaches.

OP Mainnet market share | Source: L2Beat

According to L2Beat, OP Mainnet is the second largest layer-2 scaling solution for Ethereum after Arbitrum One. OP Mainnet has a total value locked (TVL) of $3.39 billion, commanding a market share of 25%. Meanwhile, Base, a competitor backed by Coinbase, is third with a TVL of $600 million.

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Optimism (OP) Climbs 6% A Day As Crypto Market Rebounds, What’s Next?

Optimism (OP) has posted notable gains today, October 2, trading at $1.45, with a 5% increase in the last 24 hours. Furthermore, its price has gained 15% in the last seven days. 

OP’s rise coincides with the improvement in the general crypto market, which showed a remarkable recovery. However, whether OP will sustain the ongoing rally remains to be seen. But a close look at a few technical indicators may provide vital insights into its next price moves. 

OP Approaches Overbought Zone As Buyers Sustain Rally

OP continues to show positive price momentum as buyers dominate the market. Also, it has formed a fifth consecutive candle on the daily chart, confirming active accumulation by traders. Its rally became prominent on September 29, when it broke above the Donchian Channel (DC) median band.

OP flipped the $1.41 resistance level to support today and edges closer to the upper band of the Donchian Channel towards the $2.50 resistance level. If the buyers sustain the rally above the $1.50 resistance, OP will likely move into the overbought zone. 

Additionally, the Moving Average Convergence/Divergence (MACD) has risen above its signal line, displaying a strong buy signal. Also, the Histogram bars are green, confirming that the buyers are still active. More so, the Relative Strength Index (RSI) indicator displays a value of 64.2 and is rising to the overbought region of 70. 

Based on these indicators, OP will likely enter the overbought zone in the coming days, implying that accumulation will continue. However, traders should look out for bearish resistance at the $1.50 level that could serve as a potential entry point for sellers. 

OPUSD price chart

What Could Be Behind OP’s Recent Gains?

Besides the general recovery in the crypto market, Optimism records exciting developments in its ecosystem. One notable change is a September 29, 2023, proposal to change Optimism’s security model. 

According to the proposal, the OP team aims to hand over the admin key for the OP Mainnet to public and decentralized participants. These participants will be the Security Council held accountable for Optimism’s Governance. 

Although this proposal awaits approval, it creates engagement in the OP ecosystem, thus increasing investor interest and activity. And this increased activity exerts higher buy pressure on the token. 

Furthermore, the Optimism Superchain is another innovation driving ecosystem growth. According to blockchain data provider Covalent, the Superchain is an interlinked blockchain network of individual chains tagged “OP chains.” 

Interestingly, builders can use the Superchain to engage in on-chain development. However, they must comply with the Law of Chains, a set of community rules on how teams support public goods and decentralization. 

The OP Mainnet is the first member of the Superchain. Again, it has recorded increased daily active addresses, higher than Arbitrum, which is declining in on-chain activity. 

BuildOnBase, created by Coinbase, is the second member of the Superchain, aiming to attract billions of users. BuildOnBase ranked as one of the best-performing chains in 2023 and the fastest L2 to reach 100,000 users in 56 days. 

These developments are likely driving the growth in the Optimism ecosystem, evident in its recent price surge. 

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Upcoming Optimism Unlock Threatens To Drag OP Below $1

The Optimism native token OP is now in the line of fire with millions of tokens set to be released into circulation. This threatens the altcoin’s price which is already on a downward spiral after carrying out its 3rd airdrop.

Optimism Set To Unlock 24 Million Tokens

In the latest iteration of its token unlock events, the Optimism network is looking at over 24 million tokens being unlocked and brought into circulation. On-chain token tracking website Token Unlocks reports that the 24.16 million token is worth approximately $30.7 million at current prices.

The token unlock event will take place on September 30, which is less than four days from the time of writing. This will see the equivalent of 3.03% of the total OP supply being released into circulation at once.

Optimism OP unlock

This is coming just one month after the network locked an equivalent amount on August 30. Just like the August unlock, the 24.16 million tokens are allocated to two groups. 12.75 million tokens worth $16.19 million are going to Core Contributors and 11.41 million tokens worth $14.49 million will go to Investors.

The Optimism unlock event is the largest of the over $54 million in token unlocks expected to happen over the next seven days. Other notable unlocks include SUI unlocking 4.9% of supply worth $16.92 million and Yield Guild Games (YGG) unlocking 6.7% of supply worth $2.55 million.

Gauging The Impact on OP Price

A good way to figure out how the OP price might react is to look at historical performance during similar events. In the case of the OP price, there is no need to look too far back as the last token unlock event happened only a month ago.

On August 30, Optimism unlocked an identical number of tokens and the price reacted negatively to this new supply. OP initially held tight around the $1.5 mark but once the unlock was completed, the price of the token nosedived, dropping from $1.5 to $1.3 in the span of two days.

This shows that token unlocks, especially with the size of the upcoming Optimism unlock, are inherently bearish for price. If the historical pattern holds, then the OP price could easily succumb to the bears and threaten the $1 mark. At the very least, the impact of this new supply could lead to a 10% decline, which would put the OP price just above $1.1.

Even now, OP is already feeling the impact of the incoming bearish sentiment. Over the last week, the price has plummeted more than 10%, bringing it below the $1.3 resistance.

Optimism (OP) price chart from Tradingview.com (token unlock)

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Optimism To Sell 116 Million OP Tokens Via Private Sale: Will The Price React?

Optimism has revealed its plans to sell 116 million OP tokens to seven private buyers. According to the update, this sale is for treasury management tokens. 

Based on current prices, this sale will transfer approximately $159 million worth of OP tokens to the buyers. Given the sheer amount of the sale, some traders believe it will likely cause a decline in OP’s price.

Optimism Announces Sale OF 116 Million OP Tokens Following Third Airdrop Event 

In detail, Optimism posted a community update on September 20 on selling approximately 116 million OP tokens. The tokens are from the unallocated portion of the OP Token treasury, and these tokens are part of the Foundation’s original working budget of 30% of the initial OP supply.

According to the update, the tokens are subject to a two-year lockup. During the lockup period, the purchasers can delegate the tokens to third parties for on-chain governance.

Also, the announcement stated that from September 20, several transactions will take place with the released tokens. It noted that the transactions are pre-planned. 

It bears mentioning that this token sale comes a few days after Optimism announced its third OP airdrop to reward community members for participation in on-chain governance. Optimism released over 19 million OP tokens to over 31,000 unique addresses. 

Meanwhile, the OP community received the announcement with mixed reactions, with one user expressing disappointment. He expressed concerns that the token sale will increase Optimism’s circulating supply, impacting the price.

Optimism’s Private Token Sale: Will It Affect OP’s Price?

Some observers have expressed concern that the sale will affect OP’s price negatively, as the buyers may dump their tokens. However, there are a few reasons why this is unlikely to happen.

Firstly, the sale is private, meaning the buyers are not required to disclose their identities or intentions for the tokens. Therefore, it makes it difficult for traders to anticipate the buyers’ actions.

Secondly, the tokens are from the OP treasury’s unallocated portion and are not part of the circulating supply. It means that the sale will have a minimal impact on the availability of OP on the open market.

Furthermore, the tokens are subject to a two-year lockup period. The lockup prevents buyers from selling them on secondary markets until at least 2025, reducing the likelihood of a sell-off that could depress price.

Overall, Optimism can fund its development by raising capital from investors without relying on the public. Such action could lead to increased demand for OP from bullish investors on the project’s long-term prospects.

OPUSD price chart

Historical Data Suggests Private Sales Could Boost OP Price

Other projects have held similar private sales in the past. Recall that Polygon raised $450 million last year in a private token sale led by Sequoia Capital India. Also, in 2021, Arbitrum raised $120 million in a private token sale led by Lightspeed Venture Partners.

In both of these cases, the private token sales positively impacted the price of the respective tokens. The Polygon MATIC’s price increased by over 50% in the two weeks following the announcement of the private sale. 

Similarly, the price of AAVE increased by 20% in the two weeks following Arbitrum’s private sale announcement.

Therefore, based on this historical precedent, the private sale could benefit OP in the long run. However, note that the cryptocurrency market is volatile, and OP’s price is not guaranteed to increase.

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Boosting Optimism Protocol: Can Incentives Drive OP Prices Higher?

Optimism (OP) has been at the forefront of the blockchain industry with its incentive program, which recently led to the protocol’s cumulative trading volume exceeding an impressive $3.8 billion.

Analyst Ryan Holloway has shed light on the remarkable impact of Optimism’s incentive program. The availability of OP trading rewards and incentives on various platforms, including Polynomial, played a pivotal role in this surge in usage metrics.

The incentivization strategy employed by Optimism has proven wildly successful, resulting in an astounding 23-fold increase in trading volume for the protocol. This achievement, however, comes with a caveat, as it raises questions about the composition of this newfound trading activity.

Rise In Trading Volume Masks Optimism’s Growth In Daily Traders

While the surge in trading volume is undoubtedly impressive, a deep analysis reveals a more nuanced picture. The growth in daily traders has been relatively modest, suggesting the possibility of a significant rise in power users or, in a less favorable scenario, potential wash trading activities.

But what exactly is wash trading? Wash trading involves artificially inflating trading volumes by executing simultaneous buy and sell orders for the same asset, giving the illusion of increased demand and activity. This practice is illegal in traditional financial markets and is viewed negatively in the cryptocurrency space due to its potential to mislead investors.

Optimism Faces DeFi Sector Headwinds

Optimism has faced its fair share of challenges in gaining a foothold in the competitive DeFi sector. Recent reports indicate a notable decrease in total value locked and decentralized exchange volumes on the network in recent weeks. This decline in activity is reflected in the network’s financials, with revenue plummeting by 37.5% in the last month, accompanied by an overall activity decrease of 19.7% over the same period.

Despite these setbacks, Optimism’s native token, OP, currently holds a price of $1.26 according to CoinGecko, with a 0.9% gain in the last 24 hours. However, it has seen a 6.2% decline over the past week.

Sustainability And Challenges In Optimism’s Post-Incentive Era

The sustainability of Polynomial’s retention rates after the conclusion of the incentive program will be a crucial factor in determining its long-term impact on Optimism. As the network navigates the challenges posed by wash trading concerns and its struggles to establish a firm presence in DeFi, the cryptocurrency community will be closely watching for signs of resilience and adaptability.

While Optimism’s incentive program has undeniably driven an astonishing surge in trading volume, the sustainability of this growth and the resolution of its challenges will determine the protocol’s long-term success in the highly competitive world of cryptocurrency.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Insperity

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Optimism Reverses From Range Low With 10% Gain – How Far Can Bulls Go?

Optimism (OP) is proving to be a beacon of stability amidst the tumultuous fluctuations of the cryptocurrency market, particularly Bitcoin (BTC). While Bitcoin’s price swings have left investors on edge, Optimism’s weekly rally seems poised to extend its resilience.

The cryptocurrency’s price trajectory has demonstrated a notable rebound, bouncing back from its range-low of $1.41. This steadfast performance has entrenched Optimism within a trading range bordered by $1.80 at the upper limit and $1.41 at the lower threshold. 

As bulls and bears lock horns in a battle for supremacy, the question looms: who will emerge victorious?

OP Bulls Eye $1.8 Resistance As Momentum Grows

As of the latest update, OP is priced at $1.57 according to CoinGecko, reflecting a slight 0.8% decline over the past 24 hours. However, the coin managed to register an impressive 10% increase in the last week.

The momentum appears to favor the bullish contingent, as they prepare for a renewed assault on the formidable $1.8 resistance. A glimpse into historical data suggests that the bulls’ determination might yield success in their second attempt. 

According to this price analysis, favorable outcomes could propel Optimism towards take-profit levels ranging from $2.1 to $2.3. Investors and analysts are keenly observing this showdown, ready to gauge whether Optimism’s resilience will once again hold strong against market turbulence.

Related Reading: Polygon (MATIC) At June Lows Again – Prospects For Bullish Recovery?

However, the coin’s fate is by no means set in stone. A faltering attempt to breach the $1.8 resistance would spell an extension of the range-bound pattern, giving the bears an opportunity to regain dominance by targeting the critical $1.41 support. 

Network Growth Amidst Challenges

Amidst these price fluctuations, Optimism has been strategically focusing on enhancing its network growth. A separate report reveals a remarkable upswing, with a 47% surge in daily transactions since mid-July.

Moreover, the count of daily active addresses within the Optimism ecosystem has surged by an impressive 28% over the past month. This steady expansion indicates a growing user base and heightened engagement, boding well for the platform’s future prospects.

However, recent concerns have cast a shadow over Optimism’s growth trajectory. The exploit of Exactly Protocol, a credit market operating on the Optimism network, has sparked worry among investors. This incident serves as a reminder of the challenges that even robust platforms face in a landscape characterized by innovation and risk.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Turbo and Stance

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Optimism Edges Other L2s In Gas Efficiency, Despite Loss In TVL, Revenue

Optimism (OP) has opened the year on an optimistic note as it enjoys a bull run. On the flip side, it has suffered sluggishness in terms of total value locked (TVL).

Here’s a quick snapshot of Optimism:

  •   OP price spikes by 5.76%
  •   OP down in terms of TVL; now only $500 million
  •   Users save as much as 99.4% on ETH

Arbitrum is seen to have blazed past the other leading Layer 2 blockchains including Optimism and Polygon when it comes to TVL. Regardless, the former remains unfazed as it still accelerates in tempo and dominates the L2 space.

Optimism On A Bull Run

According to CoinMarketCap, OP price is up by 5.76% or trading at $1.02 as of press time. On the contrary, its TVL isn’t too impressive as it dwindled down $550 million to now only $511 million as seen in the past 30 days, which also negatively impacted revenue.

The term “Layer 2” is used to describe an additional framework or protocol that is implemented on top of an existing blockchain system.

These methods are designed to address the problems of transaction throughput and scalability being experienced by the most prominent bitcoin networks.

Optimism has been swinging and switching back and forth to higher lows and bullish highs. Evidently, OP price has spiked by as much as 15% overnight and is now green with the price range at $1.02.

In the event that the bulls can hold on to its optimistic price momentum, Optimism could shoot to as much as $1.45 in the coming days.

Can OP Barrel Past Key Resistance?

There is an increased positive price action seen with Optimism as it is predicted to rally to as much as $1.53 in the next couple of weeks, and barreling past the key resistance. OP is going through an obvious uptrend and could retest the key resistance zone at $1.45.

Meanwhile, Optimism has the ace in terms of gas efficiency compared to its rivals. One of the perceived reasons behind the incrementing growth usage on Ethereum is that users can save more ETH whenever they use Optimism. 

Optimism was able to use less gas than other L2s, despite having a lower TVL and lower income, as reported by Dune Analytics. Even when compared to Arbitrum, the Layer 2 solution performed better.

Customers’ aggregated savings from using Optimism for transactions also kept rising. As of this writing, the Ethereum scaling solution helped its customers save up to 98%.

OP’s network, on the other hand, is faltering in terms of growth which hints the plunge in transactions and new user addresses. More so, development activity has also declined which could get in the way of its chances to attract new users.

On the brighter side, OP is spiking in terms of market capitalization as it is up by 6.74%.

-Featured image: The Coin Republic

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Optimism Sees Spike In USDC And USDT Transactions Eclipsing $1 Billion

Optimism blockchain network has recently noticed an enormous uptick in both USDC and USDT transactions which have eclipsed $1 billion.

What seems to have caught people’s attention is the fact that the Optimism chain seems to be unrivaled and unmoved by the chaos happening in the crypto space.

This is now tagged as an unusual trend because it goes against the current especially with the sudden spike in USDC and USDT.

Here’s a quick glance at how the crypto and network are performing:

  • OP price down by 1.83%
  • Metamask provides support for L2 Solutions
  • User retention rate grew to as much as 34% weekly

There seems to have been a convergence given the noticeable connection between the uptick in stablecoins with that of OP’s price performance.

According to CoinMarketCap, OP price is currently up by 0.4% in the last 24 hours, or trading at $0.9348 as of press time.

The USDC and USDT surge is observed to be following a market trend which would ultimately revert back to normal with the price of OP diminishing and with the USDC and USDT prices settling down.

Potential Factors That Cause USDT, USDC Uptick

With the increased activity, people are contemplating on what could have triggered the sudden uptick. One of the possible theories would be Optimism’s impressive Total Value Locked (TVL) as it grew immensely compared to other cryptocurrencies.  

Another is the announcement of Metamask wallet providing support for Optimism and other Layer 2 solutions. It has definitely helped increase the awareness and adoption of Layer 2 which can attract more people to shift to the network.

More so, the solution’s recent update on mobile accessibility is also one of the reasons why it has grown in popularity and also because users can easily and conveniently use Optimism via their mobile phones.

Nevertheless, even before the mobile usability update, many users have already started flocking towards OP. Its user base has increased from 24,000 to 80,000 in just three months and the figures are predicted to rise especially with the recent Metamask update.

Optimism Keeping Users Loyal

In addition, the escalating number of transactions on the Optimism network is likely due to the uptick in stablecoin transactions. It has been observed that the network isn’t just good with the attraction game but can also keep their users loyal and satisfied. In fact, the retention rate of OP has grown to as much as 34% per week.

A number of dApps are now on Optimism which also caused its TVL to increase to more than $500 million. Although there are occasions wherein the TVL declines, the spikes still outweigh the downtrend.

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Optimism (OP) Cracks Double-digit Gains, Can Bulls Breach $1 Mark?

  • OP’s price shows the first sign of bounce after seeing its price bottom at the $0.6 support zone. 
  • OP bounced off its downtrend movement as price eyes a break from its downtrend to a region of $1. 
  • The price of OP breaks out of its daily downtrend, acting as a resistance line as the price trades below the 50 Exponential Moving Average (EMA).

Despite many traders and investors expecting the month of October to be fruitful for most crypto, including Optimism (OP), the price of Optimism (OP) has had a difficult start. In recent weeks, the price of OP has failed to replicate the rally from a low of $0.5 to a high of $2. The crypto market, including the big players like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB), has had a quiet month as the prices of most altcoins have found themselves fighting for survival as they seek to defend their key support areas. (Data from Binance)

Optimism (OP) Price Analysis On The Weekly Chart

Optimism has struggled to regain its bullish momentum in recent times; despite the uncertainty that has befallen the crypto space, the price of OP hasn’t enjoyed a measure of relief after showing so much strength on the weekly chart rallying from a low of $0.5 to a high of $2.4 with many becoming interested as to what OP will accomplish. 

After the price of OP rallied to a high of $2.4 with what is its all-time high, the price has faced so much downtrend as the price dropped to a weekly low of $0.6; the price rallied from this low to a high of $0.7, where the price faced resistance to breaking above this region.

The price of OP bounced from its low after facing several rejections to trend; with the week looking more interesting for most crypto projects like OP, we could see a rally to a high of $0.9-$1. 

OP’s price needs to maintain this structure as the price heads into the monthly close; if OP continues, we could see a price trend toward $1.

Weekly resistance for the price of OP – $1.

Weekly Support for the price of OP – $0.6.

Price Analysis Of OP On The Daily (1D) Chart

Daily OP Price Chart | Source: OPUSDT On Tradingview.com

In the daily timeframe, the price of OP continues to trade below the key resistance formed at 50 EMA after breaking out of its descending triangle. The price of $0.9 acts as the resistance holding the price of OP from trending higher, which corresponds to the value of the 50 EMA.

The price of OP needs to break and hold above $0.9 for the price to trend higher to a region of $1, which is a key supply zone for most traders. If the OP price fails to break above this region, we could see the price retest its Support at $0.65.

Daily resistance for the OP price – $0.9-$1.

Daily Support for the OP price – $0.65.

Featured Image From zipmex, Charts From Tradingview

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Optimism (OP) Flashes Double-digit Gains, Can Bulls Push Price To $2?

The price of Optimism (OP) has struggled against tether (USDT) in recent weeks after seeing its price rejected from $2.5. Bitcoin’s (BTC) price showed some great strength bouncing off from a low of $18,500 to a high of $21,000. This movement has affected other altcoins as most cryptocurrencies produce double-digit gains, including Optimism (OP). (Data from Binance)

Optimism (OP) Price Analysis On The Weekly Chart 

The price of OP has had difficulty replicating its bullish move that saw the price rally to $2.5 in recent months as it rallied with a good bullish sentiment. 

After falling from an all-time high of $2.5, OP has struggled to stay afloat as the price fell to a low of $1. OP price has formed good support at $1 with what looks like an area of interest for buyers and investors.

The price of OP closed the week on a high with the new week looking more bullish; this shows strength to recover, and with this momentum from OP, we could see the price revisiting the $2 mark, where it will face resistance to trend higher.

The price of OP is faced with resistance at $2, and if the price of OP flips this region, we could see the price going to a region of $2.5 and even higher.

If the price of OP sustains this bullish bias, the price has a better chance of breaking past $2 and going higher with good buy volume.

Weekly resistance for the price of OP – $2.

Weekly support for the price of OP – $1.

Price Analysis Of OP On The Daily (1D) Chart
Daily OP Price Chart | Source: OPUSDT On Tradingview.com

OP saw its price rejected from $2.5 as the price fell to a low of $1; the price of OP bounced from this after form support to hold off sell orders.

The price of OP rallied from the low of $1 to $1.2, where it faced resistance as prices continued to range between $1 to $1.2. 

After forming a bullish symmetric triangle, the price of OP broke out with strong bias as the price could go from $1.5-$2. A close OP above $1.25 could see the price rally higher after showing bullish movements.

The price of OP trades at $1.28, trying to break and hold above the 50 Exponential Moving Averages (EMA) on the daily timeframe. The price at $01.2 corresponds to the 50 EMA acting as resistance to the price of OP.

OP needs to break above the 23.1% Fibonacci retracement value acting as resistance for the price of OP. If OP breaks and closes above this region, we could see the price going to $1,5.

Daily resistance for the OP price – $1.5-$2.

Daily support for the OP price – $1.2-$1.

OP Price Analysis On The Four-Hourly (4H) Chart
Four-Hourly OP Price Chart | Source: OPUSDT On Tradingview.com

The price of OP in the 4H timeframe continues to look bullish after breaking out of a symmetric triangle with bullish signs; the price retested above the 200 EMA bullish signs could be on the cards. 

OP price trades above the 50 EMA and 200 EMA, with the prices corresponding to $1.1 and $1.22 acting as support areas for the price of OP.

On the 4H chart, the Relative Strength Index (RSI) for OP is below 60, indicating high buy order volume for OP price.

Four-Hourly resistance for the OP price – $1.5.

Four-Hourly support for the OP price – $1.2.

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Optimism Price Bloats 25% – OP Seen Ballooning In Coming Days

Optimism price registered a spike of 25% after its opening at $1.9890. The OP/USD pair currently trades at $1.9510, with a high of $2.2150 and a low of $1.9390.  The current price movement of Optimism is going with the flow as far as the Ethereum layer-2 protocol is concerned.

It makes use of rollups that enable quicker and low-cost Ethereum transactions. OP Labs of Optimism protocol has announced this week that the planned update will happen this quarter 4 of 2022. And when that happens, this will be a game-changer.

Early Friday, OP has spiked by 11.43% and the sentiments show that it will escalate further. But, the coin was not able to keep up and dropped by 1.59% overnight. As the demand for Optimism increases, the coin’s bullish recovery also continues.

The value of OP has risen to $2.2 which is the highest it has been since June 1, 2022. At present, the coin is now valued at $500 million as it increased by more than 421% from its all-time low.

What Is Optimism?

Optimism has a very ambitious goal as it seeks to solve a lot of Ethereum’s issues. It aims to speed up and also lower the costs of Ethereum transactions by enabling optimistic rollup. In the development of layer-two solutions geared for Ethereum, the network is looking to keep it minimal.

Optimism wants to dispel the complexity and speed up Ethereum transactions. The Optimism Foundation is on top of the project and governs the OP token that is used for voting on governance proposals.

On July 25, OP Labs launched Drippie that is native to Ethereum that aims to solve many pain points when it comes to blockchain automations.

Chart: TradingView.com
Optimism Sees Spike In Investor Interest

Optimism price is on a surge due to the increase in investor interest and positive sentiment around the network’s recovery. More so, its TVL has also targeted a new high and there is also that increased fear of missing out (FOMO).

Many people are optimistic that the bull run will continue especially after it has spiked by more than 400%. Investors are looking for another ATH or a price increase. More so, buyers are also excited with Optimism outpacing Polygon which currently has a TVL of more than $1 billion.

The OP/USDT pair is beginning to recover as it skyrocketed above 38.2% following the Fibonacci retracement level that stretches at $1.389. Currently, the pair is trading at $1.891 and resistance at $1.700. A dip below this figure will pump up the selling trend until it reaches $1.389.

Crypto total market cap at $1.07 trillion on the daily chart | Source: TradingView.com

Featured image from Crypto News, chart from TradingView.com