Optimism is a layer 2 network that operates on top of the Ethereum main chain. Since its launch in June, it has been attracting the attention of investors and buyers due to its steady rise in value.
Despite the fact that the coin is currently valued below the $1 level and as written, falling, recent developments may have neutralized the price volatility.
Optimism (OP) is currently trading at $0.922285, up 3.5% over the past 24 hours, as data from Coingecko shows Wednesday.
The development team has prepared a report highlighting the progress made in the last one month. From its low point in August, when there were only 563 million OP tokens, TVL, or total locked value, is up 6%. At present there are 872 million in TVL.
optimism latest data may inspire confidence in OP
Despite the fact that this is a drop from the total value frozen OP Token on August 7th at 1.18 billion, any increase could increase investor confidence in OP Token given the current market conditions.
The Token House Governance Fund is an important component of the Optimism Network as a whole.
The primary objective of this fund is to finance network-related initiatives. Recent research has put this figure at around $40 million. The earlier expansion of the system’s TVL can be partly attributed to this figure.
This expansion is accompanied by mixed news about user data. According to recent data, the first token airdrop in June 2022 significantly increased the number of new users and trading volumes of the network.
Then, with the widespread crypto crisis, that figure fell.
Optimism: Government Fund Incentives
According to the cited analysis, however, it indicates that the network has retained the majority of its users, even as the crypto market plunged. The Governance Fund incentive contributes to retaining users.
How will the expansion of this network affect the trading of tokens? According to publicly available information, not much. The coin trades between $1.005 and $0.844 per piece. It currently follows the unfavorable market trend of the entire cryptocurrency market.
This volatility is considered typical relative to the recent crypto market volatility. While the current market conditions outside the Optimism network are tough, the same may not be true for the network.
Optimism for its users The transparency of the network has contributed to its good development. This transparent approach and democratic offer system make it one of the most decentralized currencies on the market, if not the most decentralized.
Optimism can be expected that the growing number of DeFi believers will result in additional users coming to them.
The crypto total market cap on the daily chart is $896 trillion. Source: TradingView.com Featured image from Inspiration Grid, Chart: TradingView.com (analysis represents the author’s personal views and should not be construed as investment advice).