- Declining energetic customers and transactions on Optimism might have an effect on its future success.
- High charges and lack of curiosity within the native token might contribute to the decline in energetic customers.
Based on information supplied by Token Terminal, Optimism’s [OP] market cap continued to develop regardless of a decline within the variety of day by day energetic customers. This discrepancy might be a explanation for concern for the layer 2 resolution, because the decline in energetic customers might negatively impression its utilization and adoption.
How a lot are 1,10,100 OP value at this time?
Optimism not “fee”sible anymore
Along with the decline in energetic customers, the variety of transactions on the layer 2 resolution fell from 230,000 to 186,000 within the final week, based on Dune Analytics. This might be attributed to the upper transaction charges on Optimism, in comparison with different layer 2 options like Arbitrum.
However, the excessive charges might be one purpose why energetic addresses moved away from Optimism. This might result in a lower in buying and selling quantity and total utilization of the protocol.
This affected the income generated by Optimism as effectively, which decreased throughout this era. Based on info supplied by Token Terminal, the general income generated by Optimism decreased by 70.3% within the final week.
However, its Total Value Locked (TVL) continued to indicate progress regardless of these elements. According to DefiLlama, Optimism‘s TVL grew from 588.6 million to 641.98 million prior to now week.
Time for pessimism?
However, regardless that the TVL of Optimism elevated, the curiosity in OP continued to say no. Moreover, buying and selling quantity fell from 563 million to 263 million.
Read Optimism’s [OP] Price Prediction 2023-2024
The velocity of the OP token additionally decreased, which suggests that the frequency with which OP was being transferred amongst addresses lowered. This might recommend that the token holders weren’t actively buying and selling OP.
The declining exercise on the Optimism protocol coupled with the reducing curiosity within the token might impression the protocol and OP holders negatively in the long term. At the time of writing, the value of OP was $2.02. It decreased by 10.60% within the final 24 hours, based on CoinMarketCap.