Why Optimism (OP) is Growing and What is The Price Prediction For 2024
Optimism (OP)'s price has risen sharply to $3.347. What is the reason for this growth?
Optimism (OP) crisis
Optimism and Arbitrum have been competing for the right to be the leader in the L2 solutions sector for a long time. In the last six months, the number of active addresses in the Arbitrum network was higher than in Optimism. In July, Arbitrum had 9.70 million addresses, while Optimism had 6.26 million. This competition and difference in the number of addresses also affected the TVL of the two networks, making Arbitrum dominate the L2 solutions market with a 60.34% share. To stimulate the community and attract more people to the network, the Optimism team had to hold a third token airdrop in September.
One of Optimism's protocols was exploited in August, resulting in the theft of more than $7 million. This may have also negatively impacted Optimism's plans to become the dominant network among L2 solutions. The team began implementing a series of upgrades.
Why Optimism (OP) is growing?
Over the past month, the number of daily transactions increased by 42% to 512,770. Activity on the network has also increased. Last week, 77,470 active addresses were recorded per day. This is despite the increased in-network fees that were also recorded during this period. This is due to the third airdrop of OP tokens, which was back at the end of September. This airdrop is part of the Optimism team's plan to stimulate the community.
Optimism Network's TVL has increased 7% in the last 30 days. TVL now stands at $5.19 billion. This is due to the growing demand for L2 solutions this year. Last month, the OP growth was triggered by Optimism's collaboration with Coinbase. Since then, the price has continued to rise. The increased price is supported by the collaboration with Lisk and Gelato. The collaboration with Lisk allows Optimism to increase overall transaction speeds, and with the Gelato integration, developers can easily deploy their fully serviced OP Chain.
Optimism (OP) forecast for 2024
The sharp rise in price started last week when OP soared by 40%. Since then, the token has been in an uptrend. At the time of writing, OP's price is $3.347. OP continues to show bullish momentum.
Source and Copyright © TradingView
Optimism is considered to be the Layer 2 network of the Ethereum network. Some analysts predict that the Proto-dank update, which will take place in the first half of 2024, will have a positive impact on the Layer 2 networks, including Optimism. This suggests further price growth.
