Despite token airdrop, Optimism logs decline in user activity- Decoding ‘why’

• Optimism performed an airdrop of its governance tokens to over 300,000 wallets on 9 February.
• Person exercise, nonetheless, continues to say no.

Regardless of an airdrop of 11.7 million OP tokens to over 300,000 wallets on 9 February, the value of Layer 2 (L2) token Optimism (OP) continues to say no, inflicting traders to lose confidence.

Real looking or not, right here’s OP market cap in BTC’s phrases

Per a blog post printed on 9 February by the layer 2 blockchain’s caretaker group, Optimism Collective, the unannounced airdrop was made to customers on the community which have delegated the voting energy of their OP tokens and addresses that spent greater than $6.10 on L2 gasoline since 25 March 2022. 

Greedy at straws?

In September 2022, Optimism launched a set of 18 duties referred to as “Optimism Quests.” These quests aimed to enhance the person expertise by guiding customers by way of totally different options on the community, resembling swapping, lending, and staking. This system’s launch resulted in a big enhance in person numbers and every day transactions on the community.

Nonetheless, for the reason that finish of the Quests on 17 January, the every day transaction rely on the Optimism roll-up platform has decreased considerably.

In keeping with information from IntoTheBlock, a comparability of exercise between Optimism and Arbitrum confirmed that the every day transaction rely of Arbitrum surpassed that of Optimism shortly thereafter.

Supply: IntoTheBlock

The unannounced airdrop could possibly be taken as an effort by Optimism to achieve a bonus over Arbitrum. Presently, Arbitrum has a higher variety of transacting wallets, with a complete that’s greater than double that of Optimism, which has resulted in a rising distinction between the 2 exchanges’ transacting wallets in latest months.

In keeping with information from Dune Analytics, the variety of every day energetic addresses on Optimism has decreased for the reason that conclusion of its Quests program. In distinction, the variety of every day energetic addresses on Arbitrum has elevated. 

Though the Arbitrum community doesn’t presently have a token, the rise in utilization could also be attributed to the will of many customers to change into eligible for token airdrops as soon as the L2 community launches its token.

Supply: Dune Analytics

How a lot are 1,10,100 OPs value as we speak?

An airdrop is okay, however extra may be required

In keeping with CoinMarketCap, OP’s value has decreased by 14% for the reason that airdrop. As of this writing, the altcoin traded at $4.14. 

An evaluation of OP’s efficiency on the every day chart revealed a gentle decline in shopping for momentum for the reason that airdrop. Its Relative Power Index (RSI) and Cash Circulation Index (MFI) have since fallen to the touch their respective impartial traces.

With much less liquidity within the OP market, these momentum indicators would breach their impartial zones precipitating an additional decline in OP’s value. 

Supply: OP/USDT on TradingView