Optimism’s transaction count reaches a new high, but what does it mean for OP

• The variety of transactions on Optimism reached an all-time excessive.
• Charges generated elevated together with the worth of the token.

Regardless of unstable market circumstances, the variety of transactions on L2 platform Optimism [OP] reached a brand new all-time excessive, sitting at 590.67k at press time, in keeping with Dune Analytics’ picture beneath.

This improvement indicated that an growing variety of customers had been utilizing L2s, corresponding to Optimism, to make transactions.

Supply: Dune Analytics

Learn Optimism’s [OP] Worth Prediction 2023-2024

Reaching new highs throughout market lows

One purpose for the rising variety of transactions can be the quantity of ETH that customers saved through the use of Optimism. 

After September, the variety of transactions on Optimism was cheaper than any Layer 1 cryptocurrency. If this development continues, extra customers can be inclined to make use of Optimism for his or her transactions. 

Now, as a result of growing variety of transactions on the Optimism community, the charges collected by the community elevated as properly.

The variety of charges collected per day elevated by 62.6% within the final seven days, in keeping with Token Terminal. At press time, the quantity of charges generated by Optimism was $67.9k.

Supply: Dune Analytics

The state of HODLers on Optimism

This progress in Optimism had a optimistic affect on the community’s on-chain metrics as properly. Notably, OP’s MVRV ratio soared. This implied that if most holders had been to promote their tokens, they’d achieve this at a revenue. This may increasingly create promote strain on holders.

Nonetheless, the rising lengthy/brief indicator recommended that the majority token holders who would revenue from promoting their tokens can be long-term HODLers of the OP token. In that case, it could be most unlikely that long-term traders of the OP token would exit their positions in such haste.

Supply: Santiment

Regardless that long-term holders supporting OP might present reduction to the token’s holders, the declining exercise on the chain might be alarming.

The day by day lively addresses for OP fell sharply over the previous couple of days. Coupled with that, there was a decline in velocity throughout the identical interval. This implied that the frequency at which OP was being transferred had lowered.

One other indicator that offered a cynical outlook for Optimism can be a dip in community progress, which recommended that the variety of new addresses transferring OP tokens for the primary time decreased.

Supply: Santiment

With a number of elements at play, it’s troublesome to find out the course Optimism is headed for.

That mentioned, on the time of writing, OP was buying and selling at $1.07. Its value fell by 5.44% within the final 24 hours, in keeping with CoinMarketCap.