Velodrome, a new decentralized exchange (DEX) on the Optimism network, recently saw a 52% increase in total value locked (TVL). This significant increase in TVL has also had a positive impact on the Optimism ecosystem as a whole.
According to DefiLlama, the TVL of Optimism has increased by 18% in the last month, rising from $525 million to $623 million. This increase in TVL reflects the growing popularity and adoption of the Optimism network and its protocols.
However, according to Dune Analytics, the number of transactions on Optimism has been decreasing. This could have an impact on the increasing TVL of Optimism in the future. The decrease in transaction volume could indicate a lack of liquidity or interest in the network.
Furthermore, a recent update revealed that Optimism’s performance on the Goerli Testnet had degraded. This could have a negative impact on people’s perceptions of optimism.
The poor performance could be due to a lack of scalability or network infrastructure issues. It is important to note, however, that the testnet is only a simulation of the mainnet, and that performance on the mainnet may differ.
Other popular dApps on the Optimism network, such as Synthetix and Odos, have seen a drop in activity as well. According to dApp radar, the number of unique active wallets on Synthetix fell by 16.85% during the same period, while Odos’ unique active wallets fell by 37.39%. This drop in activity could be due to a shift in user preferences or a lack of new users joining the network.
According to Santiment, the OP token’s velocity has decreased, as has the MVRV ratio and the long/short difference. This indicated that the number of times OP was held had decreased.
The increasing MVRV ratio indicated that the majority of OP token holders were profitable, while the increasing long/short difference indicated that the majority of addresses holding the token were long-term holders.
Despite rising prices, long-term investors were less likely to sell their holdings. Meanwhile, at the time of writing, OP was trading at $2.27, up 13.30% in the previous 24 hours.
While there are some concerns about the declining number of transactions and degraded performance on the testnet, the increase in TVL suggests a reason to be optimistic about Optimism’s future.
Finally, don’t forget that Velodrome, the new DEX on Optimism, could be a significant contributor to the growing ecosystem.
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