Layer 2 (L2) scaling resolution Optimism reported a set of sturdy community metrics for the primary quarter (Q1) of 2024, with its native OP token surging 9% on the again of this bullish momentum.
Optimism results in elevated exercise and better transaction charges
In line with latest stories from Messari ReportOptimism’s excellent market worth elevated 11% from the earlier quarter to US$3.7 billion, whereas its absolutely diluted market worth elevated 1% to US$15.7 billion.
Though extra widespread Cryptocurrency market reboundsAs Bitcoin (BTC) and Ethereum (ETH) rose 69% and 53% month-on-month respectively, OP’s market capitalization rating fell from twenty sixth to thirty ninth amongst all blockchain networks. Nevertheless, OP stays one of many high 4 exchanges by market capitalization within the Ethereum ecosystem.
Driving this development is a major enhance in optimistic on-line exercise. Within the first quarter of 2024, every day energetic addresses reached 89,000, a 23% enhance from the earlier quarter, whereas every day transaction quantity surged 39% to 470,000 throughout the identical interval.These indicators are near however not fairly reaching their targets all time excessive Season 3, 2023.
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The community’s income additionally jumped 78% from the earlier quarter to $16 million, pushed by elevated exercise and a 48% enhance in common transaction charges to $0.42. Nevertheless, this common price dropped considerably within the second half of March as a result of implementation of Ethereum Enchancment Proposal (EIP) 4844, which lowered L1 submission prices by 99%.
Whole worth locked jumped 18% in Q1
Regardless of decrease charges, Optimism’s on-chain earnings within the first quarter of 2024 elevated 14% from the earlier quarter to $2 million. The community’s complete worth locked (TVL) additionally grew 18% to $1.2 billion, though its TVL rating dropped to eleventh amongst all networks.
In Optimism’s TVL, DeFi area Dominates, accounting for 86% of energetic addresses. Messari mentioned non-fungible token (NFT) apps and video games adopted intently, accounting for six.9% and 6.7% respectively.
TVL’s main agreements embody Synthetix ($307 million, up 4% sequentially), Aave ($270 million, up 52% ​​sequentially) and Velodrome ($171 million, up 10% sequentially).
The market worth of Optimism’s stablecoin has additionally grown considerably, reaching US$809 million by the tip of the primary quarter of 2024 (a quarterly enhance of 32%). billion US {dollars}, or 63% of the overall Stablecoin market capitalization About optimism.
OP rebounds as cryptocurrency market recovers
Regardless of Optimism’s sturdy efficiency on key metrics in Q1 2024, the community’s native token OP didn’t see a corresponding worth enhance on the finish of the primary quarter.As a substitute, the OP follows the broader market downtrendhitting a yearly low of $1.80 only one month after hitting an all-time excessive of $4.84 in March.
Nevertheless, with the resurgence of bullish momentum throughout the cryptocurrency market over the previous few days, OP has adopted swimsuit. The coin’s worth has elevated by 9% previously 24 hours and by 3% previously week, and is at the moment buying and selling at $2.56.
Moreover, CoinGecko knowledge It exhibits that OP’s buying and selling quantity elevated by 19% previously 48 hours, reaching $290 million.
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Though this Bullish sentiment revived Encouragingly, OP continues to be buying and selling 46% under its all-time excessive and faces important resistance shortly earlier than a possible retest of this milestone.
The primary key resistance degree is $2.65, adopted by $2.90, which should be overcome for the coin to push in the direction of the $3.00 degree. Conversely, assist at $2.34 has confirmed essential and should be monitored intently to forestall any bearish sentiment from rising.
Featured picture from Shutterstock, chart from TradingView.com
