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Tag: Optimism (OP)

  • Nearly $1B in Token Unlocks This Week Puts Pressure on These Altcoins

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    Crypto markets are preparing for a wave of selling pressure as more than $998 million worth of token unlocks hit circulation between August 25 and August 31, according to data from Tokenomist.

    The largest scheduled releases include Sui (SUI), Optimism (OP), Jupiter (JUP), and Huma Finance (HUMA).

    Heavy Unlock Schedule

    The token activations consist of several one-off cliff unlocks totaling roughly $185 million per the Tokenomist website, as well as multiple linear unlocks, which will contribute a much larger $813 million.

    Sui tops the list with $161 million worth of tokens, representing 1.2% of supply, set to hit the market. It is followed by Slash Vision Labs (SVL), which will make available nearly 19% of its supply valued at more than $37 million.

    Other notable one-time unlocks include Jupiter’s $27.31 million, Optimism’s $24.30 million, and Kamino’s $13.97 million. Huma Finance, meanwhile, will add nearly $10 million worth of its native cryptocurrency, amounting to more than 21% of its supply, to circulation.

    Linear unlocks will stretch across several major assets. Filecoin alone will see more than $22 million worth of its FIL token released daily for a total of about $156.39 million over the week.

    Solana is also scheduled for significant unlocks, amounting to over $104 million, with each day seeing about $14.87 worth of new SOL hitting the market. Meanwhile, Dogecoin (DOGE) faces just over $3 million in new tokens each day.

    Elsewhere, Avalanche’s circulating supply will expand by about $2.5 million daily, and Worldcoin (WLD) will see close to $5 million in fresh tokens entering the market each day of this week.

    Market Outlook

    Investors may be particularly alert to the performance of HUMA, which set a new all-time low at $0.0254 today according to CoinGecko, down more than 78% from its May peak.

    Other unlock-bound tokens are also showing strain, with Sophon (SOPH) losing 9% in the last seven days, while Renzo (REZ) dropped almost 7% in the last 24 hours and was trading 95% below its 2024 high at the time of this writing.

    Solana is also in the spotlight. In a recent interview, BitMEX co-founder Arthur Hayes said he prefers to back Ethereum over SOL for the current cycle, suggesting ETH offers stronger upside potential. However, the asset has risen by more than 10% in the last week to just over $200, even though it shaved off 3.4% in the past day.

    Meanwhile, Dogecoin is showing mixed signals. The OG meme coin is trading near $0.23, down more than 4% in 24 hours, with analysts tracking a symmetrical triangle pattern forming on the charts. Support sits at $0.22 and resistance at $0.25, with a decisive move expected soon. One market watcher, Ali Martinez, suggested a DOGE rally toward $0.31 could follow a breakout, while failure to hold support risks a slide to $0.19.

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    Wayne Jones

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  • Optimism Network Activity Metrics Approach Record Levels, Propelling OP 9% Higher

    Optimism Network Activity Metrics Approach Record Levels, Propelling OP 9% Higher

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    Layer 2 (L2) scaling solution Optimism reported a series of strong network metrics in the first quarter (Q1) 2024, with its native OP token surging 9% on the back of this bullish momentum.

    Optimism Sees Higher Activity And Rising Transaction Fees

    According to a recent Messari report, Optimism’s circulating market cap increased 11% quarter-over-quarter (QoQ) to $3.7 billion, while its fully diluted market cap rose 1% to $15.7 billion. 

    Despite the broader crypto market rally, with Bitcoin (BTC) and Ethereum (ETH) gaining 69% and 53% QoQ, respectively, OP’s market cap ranking slipped from 26th to 39th among all blockchain networks. However, within the Ethereum ecosystem, OP remains one of the top four rollups by market capitalization.

    OP’s circulating market cap growth during Q1. Source: Messari

    Driving this growth was a significant uptick in Optimism network activity. Daily active addresses reached 89,000 in Q1 2024, a 23% QoQ increase, while daily transactions surged 39% to 470,000 over the same period. These metrics approached, but did not quite reach, their all-time highs in Q3 2023.

    Related Reading

    The network’s revenue also saw a substantial 78% QoQ increase to $16 million, driven by higher activity and a 48% rise in the average transaction fee to $0.42. However, this average fee dropped significantly in the latter half of March due to the implementation of Ethereum Improvement Proposal (EIP) 4844, which reduced L1 submission costs by 99%.

    Total Value Locked Jumps 18% In Q1

    Despite the fee reduction, Optimism’s on-chain profit for Q1 2024 increased 14% QoQ to $2 million. The network’s Total Value Locked (TVL) also grew by 18% to $1.2 billion, though its TVL ranking among all networks fell to 11th place.

    Within Optimism’s TVL, the DeFi sector dominated, accounting for 86% of active addresses. According to Messari, non-fungible token (NFT) applications and gaming followed with 6.9% and 6.7%, respectively. 

    TVL’s leading protocols included Synthetix ($307 million, +4% QoQ), Aave ($270 million, +52% QoQ), and Velodrome ($171 million, +10% QoQ).

    Optimism’s stablecoin market capitalization also grew significantly, reaching $809 million (+32% QoQ) by the end of Q1 2024. Circle’s USDC stablecoin and Tether’s USDT made up most of this, with USDT seeing a 64% QoQ surge to $512 million, or 63% of the total stablecoin market cap on Optimism.

    Optimism
    OP’s stablecoin market cap performance. Source: Messari

    OP Rebounds Alongside Crypto Market Resurgence

    Despite Optimism’s strong performance across key metrics in Q1 2024, the network’s native token, OP, did not see a corresponding price increase at the end of Q1. Instead, OP followed the broader market downtrend, hitting an annual low of $1.80 just one month after hitting an all-time high of $4.84 in March. 

    However, OP has followed suit as the overall cryptocurrency market has seen a resurgence of bullish momentum in the past few days. In the past 24 hours, the token has recorded a 9% price increase and a 3% uptick in the past week, currently trading at $2.56. 

    Furthermore, CoinGecko data shows a 19% increase in OP’s trading volume over the past 48 hours, reaching $290 million.

    Related Reading

    Optimism
    The daily chart shows OP’s price trending upwards. Source: OPUSD on TradingView.com

    While this renewed bullish sentiment is encouraging, OP still trades 46% below its all-time high and faces significant resistance levels soon before a potential retest of this milestone. 

    The first key resistance is at $2.65, followed by $2.90, which must be overcome before the token can push towards the $3.00 level. Conversely, the $2.34 support level has proven crucial and must be monitored closely in case of any bearish resurgence. 

    Featured image from Shutterstock, chart from TradingView.com

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    Ronaldo Marquez

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

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

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    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.

    The 1-D chart shows OP’s price recovery over the past 24 hours. Source: OPUSD on TradingView.com

    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 

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • Over 80% of Optimism (OP) Token Holders Stay Profitable Amid Market Turbulence: Data

    Over 80% of Optimism (OP) Token Holders Stay Profitable Amid Market Turbulence: Data

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    The beginning of this week saw a decline in the overall market capitalization of cryptocurrencies, dropping from $1.6 trillion to $1.5 trillion, indicating a day-on-day decrease of over 5%.

    This market downturn did not spare the native token of the Ethereum-based layer-2 Optimistic Rollup network, OP. Due to the broader market decline, OP incurred weekly losses of over 20%. Despite this, a substantial number of token holders maintained a profitable position.

    Optimism (OP) Poised for More Growth?

    According to the most recent analysis by Intotheblock, over 80% of OP token holders fall into this category.

    Such a trend is viewed as positive for the crypto asset, indicating the resilience of long-term investors who have navigated through the market’s volatility. It also underscores investor confidence for sustained growth in the future.

    The layer 2 scaling solution has witnessed massive growth over the past year, closely following its rival Arbitrum.

    A major turning point for Optimism was its Bedrock hard fork implemented on June 6 last year. The Bedrock upgrade was one element of a comprehensive set of proposals aimed at establishing a “Superchain” comprising multiple blockchain networks that share the same software for enhanced security and interoperability.

    The primary goals of the Bedrock upgrade were to decrease deposit times and fees while bolstering the network’s security. Following the hard fork, Optimism experienced a notable surge in transactions while volume followed suit.

    Network Resurgence

    Diving deeper into ITB’s data suggests that Optimism has recorded a significant number of large transactions in recent weeks. The figure spiked to 421 on January 12th, a level not seen in almost a year.

    Additionally, the total number of addresses holding some amount of balance has exceeded a million for the first time. Over the past three months, the consistent creation of new addresses has remained above 1.34k. This heightened user activity presents a positive and bullish outlook.

    On the network side, a similar trend is observed, with Optimism’s increased development activity reflected in its entrance into the top 10 crypto assets with noteworthy GitHub commits in December.

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    Chayanika Deka

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