Layer 2 (L2) scaling resolution Optimism reported a sequence of sturdy 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 keeping with a current Messari report, Optimism’s circulating market cap elevated 11% quarter-over-quarter (QoQ) to $3.7 billion, whereas its absolutely 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, throughout the Ethereum ecosystem, OP stays one of many prime 4 rollups by market capitalization.
Driving this development was a big uptick in Optimism community exercise. Every day energetic addresses reached 89,000 in Q1 2024, a 23% QoQ enhance, whereas every 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 enhance to $16 million, pushed by increased exercise and a 48% rise within the common transaction price to $0.42. Nonetheless, this common price dropped considerably within the latter half of March as a result of implementation of Ethereum Enchancment Proposal (EIP) 4844, which decreased L1 submission prices by 99%.
Complete Worth Locked Jumps 18% In Q1
Regardless of the price 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 keeping with Messari, non-fungible token (NFT) purposes 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 whole stablecoin market cap on Optimism.
OP Rebounds Alongside Crypto Market Resurgence
Regardless of Optimism’s sturdy efficiency throughout key metrics in Q1 2024, the community’s native token, OP, didn’t see a corresponding value enhance 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 swimsuit as the general cryptocurrency market has seen a resurgence of bullish momentum previously few days. Up to now 24 hours, the token has recorded a 9% value enhance and a 3% uptick previously week, presently buying and selling at $2.56.
Moreover, CoinGecko information exhibits a 19% enhance in OP’s buying and selling quantity over the previous 48 hours, reaching $290 million.
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Whereas this renewed bullish sentiment is encouraging, OP nonetheless trades 46% beneath 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 degree. Conversely, the $2.34 assist degree has confirmed essential and should be monitored carefully in case of any bearish resurgence.
Featured picture from Shutterstock, chart from TradingView.com
