OP Rallies To All-Time High
Transaction volumes on Optimism, a Layer 2 scaling resolution for Ethereum, have plummeted after the tip of a “learn-to-earn” incentives program final week.
Even as customers abandon the blockchain, nevertheless, Optimism’s native OP token hit an all-time excessive Sunday.
OP Price, Source: The Defiant Terminal
Daily transactions on Optimism are down nearly 75% since hitting an all-time excessive on Jan. 12. But its governance token has surged 168% for the reason that starting of the 12 months. Only three different tokens – Aptos, Threshold and STEPN – have carried out higher in 2023, in keeping with CoinMarketCap.
Quests End
The drop in every day transactions coincides with the tip of Optimism’s Quests program. The first collection of quests started in September and ended on Jan. 17.
“Just by reading about different apps and completing a short quiz and task, users will be able to mint a commemorative NFT that represents the completion of the respective quest,” a information on Optimism’s web site reads.
The program labored as supposed.
Even because the variety of transactions on Optimism’s foremost competitor, Arbitrum, fell by the ultimate two months of 2022, these on Optimism soared.
Daily transactions on Optimism hit an all-time excessive of 800,000 on Jan. 12. The seven-day shifting common peaked 5 days later at greater than 690,000.
By each obtainable metric, nevertheless, utilization of the platform has since fallen off a cliff.
Optimism registered greater than 600,000 transactions on Jan. 17, the final day of Quests. On Jan. 18, that determine fell to 239,000. On Jan. 19, it was simply over 165,000, a three-month low.
The variety of every day “app actions,” a metric measuring the usage of purposes within the Optimism ecosystem, is down 76% since its all-time excessive earlier this month. Transaction charges collected have dropped 71% since hitting a two-month excessive on Jan. 14.
A pair of Optimism representatives are but to reply to a request for remark from The Defiant.
Self-proclaimed DeFi analyst DeFyist noted that Quest customers had been probably hoping their interplay would qualify them for Optimism’s second airdrop, which has but to be introduced.
Data collected by pseudonymous crypto analyst J.Hackworth bears this out. About two-thirds of Optimism customers participated in Quests in January.
“In my opinion, L2s activity is due to airdrop speculation,” they wrote.
But a decline in Optimism’s person base has had little impact on the blockchain’s native token, OP.
OP Hits ATH
Amid a broader crypto rally spurred by constructive inflation information from the U.S., OP has soared in current weeks, in keeping with information from The Defiant Terminal.
ETH Price + OP Price, Source: The Defiant Terminal
Investors appear undeterred by its comparatively low float, or the quantity of circulating OP relative to the overall provide of the token.
Roughly 200M OP tokens had been in circulation Wednesday, with a market capitalization of greater than $500M. Optimism intends to finally unlock greater than 4B, giving the mission a totally diluted valuation (FDV) of over $10B at present costs.
