Optimism is a Layer 2 network that runs on top of the Ethereum main chain. Since its launch in June, it has been the focus of investors and buyers’ attention due to the steady increase in value.
Despite the fact that the value of the coin is currently below the $1 level and falling as written, price fluctuations may be neutralized by recent developments.
Optimism (OP) is currently trading at $0.922285, up 3.5% in the past 24 hours, according to data from Coingecko, Wednesday.
The development team has produced a report highlighting progress over the past month. From its low point in August, when there were only 563 million OP tokens stored, TVL, or total locked value, increased by 6 percent. At present, there are 872 million in TVL.
Optimism Latest data may spark confidence in OP
Despite the fact that this is a decrease from the total value of 1.18 billion frozen OP tokens on August 7, any rise could boost investor confidence in the 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 fund initiatives related to the network. Recent research estimates this figure at about $40 million. Previous TVL expansion of the system can be attributed in part to this figure.
This expansion is accompanied by mixed news about user data. According to recent data, the first airdrop in June 2022 caused a significant increase in the number of new users of the network and the volume of transactions.
Then, in conjunction with the broader cryptocurrency crisis, that number fell.
Optimism: Governance Fund Incentives
According to the cited analysis, it has stabilized, indicating that the network retained the majority of its users even as the crypto market 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 piece. It is following the opposite market trend of the entire cryptocurrency market at the moment.
This volatility is typical of the volatility of the modern cryptocurrency market. Although the current market conditions outside the optimism network are difficult, the same cannot be true for the network itself.
Optimism Network’s transparency towards its users has contributed to its good growth. This transparent view and democratic suggestion system makes it one of the most, if not the most decentralized currencies on the market.
Optimism can be confident that additional users will come to them as a result of 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).