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Optimism (OP) Token Soars 27%, Here Are 2 Key Reasons

Mon, 01/09/2023 - 13:59
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Gamza Khanzadaev
OP price up 27%, while Optimism network hits all-time high in daily transactions
Optimism (OP) Token Soars 27%, Here Are 2 Key Reasons
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The price of the Optimism token, OP, reached the $1.3 mark for the first time since November 2022, when the insolvency of crypto exchange FTX led to a market crash. On the way to the local top, OP has shown a rise of 27% in the last four days, and in the last eight days, this rise has been as big as 40%.

OP to USD by CoinMarketCap

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What are reasons for this OP performance?

Optimism's recent successes on the cryptocurrency market are not limited to the growth of the native token ahead of the market, but also to the achievements of the network itself.

So, demand for Optimism as a Layer 2 solution for Ethereum was clearly demonstrated by setting a daily transaction record, 690,700, and by the corresponding investor interest in the token of this much-sought-after network. According to Token Terminal, the surge in activity on the Optimism network resulted in a 42.81% increase in fees collected and a 71.38% increase in protocol revenue.

Optimism Revenue Outperforms Layer 1 Networks Following Launch of OP Token

Another key reason for the rise in OP quotations is a sort of post-Santa rally that suddenly emerged on the crypto market in the first weeks of the new year. The mix of Bitcoin's declining dominance and nailed down altcoin prices has provided a kind of respite for the market during the ongoing crypto winter.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.