- Optimism token curiosity spikes, however a number of elements threaten development.
- Bedrock improve proposal might revive declining curiosity in Optimism protocol.
Optimism‘s token, OP, witnessed a surge in its buying and selling quantity over the previous few days. This spike in curiosity prompt that the Optimism protocol was gaining recognition. It was additional highlighted by the dominance of OP in Uniswap buying and selling pairs.
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In accordance with knowledge from Messari, three of the highest 5 buying and selling pairs on Uniswap V3 embrace OP as one of many buying and selling pairs, which is a major improvement.
Nonetheless, this dominance of OP might not final for lengthy, as a number of elements might negatively influence the way forward for the Optimism protocol and its token.
How can will increase in buying and selling quantity have an effect on supply-side APR/APY?
Three out of the highest 5 buying and selling pairs by 30-day Buying and selling Quantity on @OptimismFND‘s @Uniswap V3 occasion have $OP token of their pair.🧵 pic.twitter.com/TMrDZUSjxf
— Messari (@MessariCrypto) February 4, 2023
Greater than meets the attention
One among these elements is the decline in L2 fuel utilization. This decline in fuel utilization might result in decrease exercise on the Optimism community, which might negatively influence the protocol.
Supply: Dune Analytics
One other issue that might influence the protocol is the top of the Optimism Quest NFT assortment. The gathering, which was a four-month incentive program, managed to draw a number of customers to the Optimism protocol, however after it ended, the protocol had a tough time attracting new customers.
This resulted in a decline within the variety of distinctive energetic customers exchanging Optimism NFTs, which is a trigger for concern.
Supply: Dune Analytics
The decline within the variety of customers and exercise on the Optimism community led to a decline within the income generated by the protocol.
In accordance with the token terminal’s knowledge, the income generated by Optimism fell by 48.6% within the final 24 hours. This decline in income is an indication that the expansion of the protocol might decelerate.
Impression on the token
It ought to be famous right here that the community development of the OP token took a success after 2 February. OP holders planning to go lengthy ought to take this as a significant signal of concern.
Furthermore, the variety of every day energetic addresses additionally decreased. This decline within the exercise of the token might counsel a bearish future for OP forward.
Supply: Santiment
Nonetheless, there may be nonetheless hope for the Optimism protocol. The just lately proposed Bedrock upgrade might enhance the protocol and entice new customers. Thus, serving to to alter public opinion in favor of the protocol.
If the Bedrock improve is profitable, it might assist the Optimism protocol to bounce again from its bearish situation.