Optimism is a Layer 2 network that runs on top of the Ethereum mainchain. Since its launch in June, it has been the focus of investors and buyers due to its steady increase in value.
Despite the fact that the coin’s value is currently below the $1 level and falling as of this writing, the price swings may be negated by recent developments.
Optimism (OP) is currently trading at $0.922285, up 3.5% in the past 24 hours, according to data from the Coingecko show on Wednesday.
The development team has produced a report highlighting the progress made over the past month. Since its low point in August, when there were only 563 million OP tokens staked, the TVL, or total value locked, has increased by 6%. At present, there are 872 million TVL.
Optimism Latest data can instill confidence in OP
Despite being down from the total value of 1.18 billion OP tokens frozen on August 7, any increase may boost investor confidence in the OP token given the current market conditions. market.
The Token House Governance Fund is an essential part of the Optimism Network as a whole.
The main objective of this fund is to finance initiatives related to the network. Recent research puts that figure at around $40 million. The earlier expansion of the system’s TVL can be partly attributed to this figure.
With this expansion comes mixed news regarding user data. According to recent data, the first token airdrop in June 2022 generated a huge increase in the number of new users and the network’s transaction volume.
Then, alongside the broader crypto crisis, that number dropped.
Optimism: the incentives of the Governance Fund
According to the quoted analysis, however, it has stabilized, indicating that the network has retained the majority of its users even as the crypto market has declined. Governance fund incentives contribute to user retention.
How will the expansion of this network affect token trading? According to publicly available information, not much. The coin is trading between $1.005 and $0.844 per coin. It follows the unfavorable market trend of the entire cryptocurrency market at present.
This volatility is considered typical compared to recent fluctuations in the crypto market. While current market conditions outside of the Optimism Network are challenging, the same is not true for the Network itself.
The Optimism Network’s transparency towards its users has contributed to its good growth. This transparent vision and this democratized proposal system make it one of the most decentralized currencies on the market, if not the most decentralized.
Optimism can be sure that additional users will come to them due to the growing number of DeFi believers.
Crypto total market cap at $896 trillion on the daily chart | Source: TradingView.com Featured image from Motivation Grid, Chart: TradingView.com (The analysis represents the author's personal views and should not be construed as investment advice).