An ‘Optimism’ outperformance – Will OP take part?

• Optimism does higher than different layer 2 chains by way of internet movement. Protocol manages to retain the next variety of customers.
• OP’s worth continues to say no, nonetheless, whales present sudden curiosity.

Optimism has been having a tricky time competing within the L2 area as opponents equivalent to Arbitrum and Polygon have been dominating the market over the previous few months. Nevertheless, it seems that Optimism began to realize its footing within the L2 area but once more and has been outperforming different L2 options in some areas.

Real looking or not, right here’s OP’s market cap in BTC’s phrases

On the brighter aspect

In response to information supplied by analyst Dynamo Patrick, Optimism ranked number one by way of internet bridge movement. For context, internet bridge movement in crypto refers back to the motion of digital belongings between completely different blockchain networks or bridges.

Within the final week, Optimism’s internet movement reached a complete of $57.1 million.

High 5 chains by 7 day internet bridge movement 👀 pic.twitter.com/JJnVeTLkY9

— Patrick | Dynamo DeFi (@Dynamo_Patrick) May 24, 2023

The spike in internet movement on the Optimism protocol may very well be attributed to the rising variety of customers on the community. Not solely had been new customers being onboarded to Optimism, however they had been selecting to remain as effectively.

This was showcased by Dune Analytics’ information which indicated that Optimism’s person retention started to surge over the previous few days. At press time, the weekly retention for brand new customers on Optimism was round 17.3%.

Nevertheless, the OP token didn’t see the identical development as its protocol. Since 15 April, the worth of OP declined by 43.64%. At press time, OP was buying and selling at $1.596 after fluctuating between the $1.867 and $.494 resistance and help.

The Relative Power Index (RSI) of OP skilled a big and constant decline over the previous few days. It reached a worth of 40.72 on the time of writing. Conversely, the Chaikin Cash Circulation (CMF) displayed a contrasting sample by repeatedly rising, with a recorded worth of 0.13.

This steered that regardless of the weakening momentum indicated by the RSI, there was nonetheless a requirement for OP, probably from new consumers or institutional buyers.

The amount with which OP was being traded, additionally declined throughout this month. Nevertheless, there was a spike within the variety of whale transactions for the OP token. If whales proceed to indicate curiosity and accumulate extra OP, it may have a constructive affect on the OP token going ahead.

Learn Optimism’s Worth Prediction 2023-2024