In the realm of digital currencies, recent advancements in Optimism’s Layer-2 scaling solution have ignited hope among investors. Optimism has recently reported a series of impressive network metrics in the first quarter of 2024, resulting in a 9% increase in the value of its cryptocurrency, OP token.
Optimism Gains Attention with Increased Activity and Rising Transaction Fees
According to a recent report by Messari, Optimism’s circulating market cap has grown by 11% from the previous quarter, reaching $3.7 billion. The fully diluted market cap has also seen a 1% increase, reaching $15.7 billion. Despite this growth, OP’s market cap ranking has dropped from 26th to 39th among all Blockchain networks during the broader crypto market rally. Nonetheless, within the Ethereum ecosystem, OP remains one of the four largest projects based on market cap.
This growth can be attributed to a significant increase in activities on the Optimism network. In the first quarter of 2024, daily active addresses have risen by 23% to 89,000 compared to the previous quarter, while daily transactions have increased by 39% to 470,000 during the same period. These metrics are approaching the all-time highs recorded in the third quarter of 2023.
The network’s revenue has also seen a substantial increase of 78% from the previous quarter, reaching $16 million. This growth is thanks to increased activities and a 48% rise in the average transaction fee, which now stands at $0.42. However, the average fee has significantly dropped due to the implementation of Ethereum Improvement Proposal (EIP) 4844, which reduced L1 transmission costs by 99% in the second half of March.
Total Locked Value Increased by 18% in the First Quarter
Despite the reduction in fees, Optimism’s on-chain profit in the first quarter of 2024 has increased by 14% from the previous quarter, reaching $2 million. The network’s Total Locked Value (TVL) has risen by 18% to $1.2 billion. However, it has fallen to the 11th place in the TVL ranking. The DeFi sector, which constitutes 86% of active addresses, has led Optimism’s TVL. NFT applications and games accounted for 6.9% and 6.7%, respectively, according to Messari.
Among the leading protocols, Synthetix has shown a 4% increase in TVL quarter-on-quarter, reaching $307 million. Aave has recorded significant growth with a 52% increase in TVL, amounting to $270 million, while Velodrome has witnessed a 10% rise in TVL, reaching $171 million.
Optimism’s stablecoin market cap has also experienced a notable increase in the first quarter of 2024, reaching $809 million, representing a 32% rise from the previous quarter. Circle’s USDC stablecoin and Tether’s USDT have played a significant role in this increase. Notably, USDT has risen by 64% to $512 million, constituting 63% of the total stablecoin market cap on Optimism.
OP Coin Rises Again with the Crypto Market Revival
Despite Optimism’s strong performance in the first quarter of 2024, its cryptocurrency, OP, did not achieve the expected price increase by the end of the period. In March, OP reached an all-time high of $4.84, but just a month later, it fell to a yearly low of $1.80, aligning with the market’s downward trend.
However, the recent upward momentum in the general cryptocurrency market has had a positive impact on OP coin. It has recorded a 9% price increase in the past 24 hours and a 3% rise in the past week, currently trading at $2.56. Additionally, according to CoinGecko data, OP’s trading volume has increased by 19% in the last 48 hours, reaching $290 million.
Please note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and conduct their own research.
