Last week, Optimism (OP) was among the best-performing cryptocurrencies in the market despite Bitcoin’s price coming below $58k. Apparently, there was an increase of more than 30% in the weekly chart and another substantial increase in the daily chart. However, this recent performance from OP happened due to a lot of reasons, and we will be exploring them below.
Strategic Collaborations and Partnerships
Over the past seven days, breakthrough partnerships and collaborations have been the major news rocking the Optimism ecosystem. The one that stands out is the recent partnership with Base Blockchain to help creators and developers across the superchain. In their Twitter (now X) announcement, they said they would be offering around 600,000 OP tokens to incentive creators. Furthermore, they will also provide the Superchain App Accelerator to help creators reach over 1,000 users.
Bullish Optimism OnChain Metrics
Several on-chain metrics suggest that Optimism will continue for a long time. Apparently, certain metrics, such as network growth, large transactions, and investor concentration, show many bullish movements.
Moreover, IntoTheBlock data shows that more than 77% of investors are currently at a profit from holding Optimism (OP) tokens. Nevertheless, the bulls and bears metric shows bearish transactions are still in large proportions. In seven days, there are only around 260 million bullish OP transactions compared to 280 million bearish volume of transactions.
Optimism Chain Adoption and Governance Collaborations
The adoption of solutions created by Optimism Chain developers is also part of the reasons behind the surge in OP price. Recently, a crypto project named Agora announced it will be partnering with Optimism to implement an end-to-end governance app for crypto protocols. Apparently, this is generating hype around the OP token, leading to more investors for the token.
Current Optimism (OP) Market Performance
According to data from CoinMarketCap, Optimism rose by more than 30% within a week. However, there was a slight retracement, bringing this figure a little above 10%. At press time, there was more than a 3% increase in the daily chart and another 12% Increase in the weekly chart. However, the monthly chart shows Optimism has suffered from a massive downturn occurring in the crypto market. Apparently, there’s been more than a 5% decline in the past 30 days. There’s also a noticeable change in the market valuation of Optimism, increasing to over $3 billion while the trading volume is above $300 million.
Wrapping Up
Optimism (OP) is currently one of the best-performing cryptocurrencies in the market, and this is due to a lot of reasons. First is because of its recent strategic partnerships with other top crypto projects. One of them is that of Base, which will allow Optimism to help developers and creators across the Superchain. Others include its governance collaborations and adoption and its bullish on-chain metrics, such as large transactions and investor concentration. Although there’s a slight retracement in its price, many things indicate Optimism will have a great 2024.
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The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
