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Optimism (OP) Sees 300% Spike in Daily Transactions, Here's Price Impact

Wed, 06/28/2023 - 14:09
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Tomiwabold Olajide
Optimism daily volumes have seen significant rise
Optimism (OP) Sees 300% Spike in Daily Transactions, Here's Price Impact
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On-chain analytics firm IntoTheBlock has observed a significant uptick in transactions on Optimism in the past month. Optimism (OP) is a Layer 2 blockchain on top of Ethereum.

IntoTheBlock notes that daily volumes on the Optimism network have risen from lows of nearly 10,700 to nearly 40,000, where they are currently. This represents a nearly 300% increase.

"Data suggests a notable uptick in OP transactions over the past month.  Daily volumes have rebounded from a low of approximately 10,700, currently fluctuating around the 40,000 mark," IntoTheBlock tweeted.

Nansen, a blockchain analytics firm, also reports an increase in transactions on the Optimism network. On June 26, it was reported that after the June 6 "Bedrock" upgrade, transactions on the Optimism network increased by 67%.

Before the upgrade, the network saw less than 300,000 transactions per day, but this figure had risen to nearly 550,000 by the middle of June. This is an almost 67% rise. Notably, gas prices have decreased by around 50% to around $50,000.

On June 6, the Optimism network received its "Bedrock" upgrade, which reduced deposit times, reduced Layer 1 costs and included additional security features.

The upgrade is one of a series of improvements that Optimism claims will contribute to the creation of a "Superchain" of scaleable Web3 networks based on its OP Stack software.

OP's price action

The recent spike in transactions has yet to impact the OP price positively. At the time of writing, OP, the native token of the Optimism blockchain, was down nearly 7% in the last 24 hours to $1.25. 

Since attaining highs of $3.28 in February, OP has reached lower highs and lower lows, which shows a decrease in value.

Optimism (OP) Bedrock to Reduce Network Fees by Almost 50%: Analysis

The bearish death cross pattern formed on the OP daily chart further aided its declines. In late May, the OP price declined to trade below its daily moving averages, where it remains to the present.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.