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

Layer 2 (L2) scaling resolution Optimism reported a collection of robust community metrics within the first quarter (Q1) 2024, with its native OP token surging 9% on the again of this bullish momentum.

Optimism Sees Larger Exercise And Rising Transaction Charges

In line with a current Messari report, Optimism’s circulating market cap elevated 11% quarter-over-quarter (QoQ) to $3.7 billion, whereas its totally diluted market cap rose 1% to $15.7 billion. 

Regardless of the broader crypto market rally, with Bitcoin (BTC) and Ethereum (ETH) gaining 69% and 53% QoQ, respectively, OP’s market cap rating slipped from twenty sixth to thirty ninth amongst all blockchain networks. Nonetheless, inside the Ethereum ecosystem, OP stays one of many prime 4 rollups by market capitalization.

OP’s circulating market cap development throughout Q1. Supply: Messari

Driving this development was a big uptick in Optimism community exercise. Day by day energetic addresses reached 89,000 in Q1 2024, a 23% QoQ improve, whereas day by day transactions surged 39% to 470,000 over the identical interval. These metrics approached, however didn’t fairly attain, their all-time highs in Q3 2023.

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The community’s income additionally noticed a considerable 78% QoQ improve to $16 million, pushed by larger exercise and a 48% rise within the common transaction payment to $0.42. Nonetheless, this common payment dropped considerably within the latter half of March because of the implementation of Ethereum Enchancment Proposal (EIP) 4844, which diminished L1 submission prices by 99%.

Complete Worth Locked Jumps 18% In Q1

Regardless of the payment discount, Optimism’s on-chain revenue for Q1 2024 elevated 14% QoQ to $2 million. The community’s Complete Worth Locked (TVL) additionally grew by 18% to $1.2 billion, although its TVL rating amongst all networks fell to eleventh place.

Inside Optimism’s TVL, the DeFi sector dominated, accounting for 86% of energetic addresses. In line with Messari, non-fungible token (NFT) functions and gaming adopted with 6.9% and 6.7%, respectively. 

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

Optimism’s stablecoin market capitalization additionally grew considerably, reaching $809 million (+32% QoQ) by the top 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 entire stablecoin market cap on Optimism.

OP’s stablecoin market cap efficiency. Supply: Messari

OP Rebounds Alongside Crypto Market Resurgence

Regardless of Optimism’s robust efficiency throughout key metrics in Q1 2024, the community’s native token, OP, didn’t see a corresponding value improve on the finish of Q1. As an alternative, OP adopted the broader market downtrend, hitting an annual low of $1.80 only one month after hitting an all-time excessive of $4.84 in March. 

Nonetheless, OP has adopted go well with as the general cryptocurrency market has seen a resurgence of bullish momentum prior to now few days. Previously 24 hours, the token has recorded a 9% value improve and a 3% uptick prior to now week, at present buying and selling at $2.56. 

Moreover, CoinGecko information reveals a 19% improve in OP’s buying and selling quantity over the previous 48 hours, reaching $290 million.

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The day by day chart reveals OP’s value trending upwards. Supply: OPUSD on TradingView.com

Whereas this renewed bullish sentiment is encouraging, OP nonetheless trades 46% under its all-time excessive and faces important resistance ranges quickly earlier than a possible retest of this milestone. 

The primary key resistance is at $2.65, adopted by $2.90, which should be overcome earlier than the token can push in the direction of the $3.00 stage. Conversely, the $2.34 help stage has confirmed essential and should be monitored carefully in case of any bearish resurgence. 

Featured picture from Shutterstock, chart from TradingView.com