July 23, 2024
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Optimism: Can this new announcement save OP from the bear attack

Optimism [OP] has recently seen a drop in key metrics, which is problematic for the network. According to Dune, the number of daily transactions on Optimism has been decreasing since the middle of January 2023, indicating fewer usage. But, given Optimism’s recent announcements, the scenario may soon alter. Optimism just tweeted that voting for the second round of Retroactive Public Goods Funding (RetroPGF) had begun.

In another tweet, Optimism stated that the ecosystem was certain that after customers tried Optimism for themselves, they will stay to learn about the wider vision that the Optimism tech stack empowers, such as Optimism Governance and RetroPGF. RetroPGF 2 will allocate 10 million OP tokens to fund public goods that support the development and use of the OP Stack.

According to the official statement, by appropriately funding public goods, the Collective can create a flourishing ecology and a more prosperous economy.RetroPGF Round 2 will assist the development and use of the OP Stack by funding public goods. This is divided into three categories: infrastructure, tooling, and education.Aside from that, Optimism Daily, a Twitter account that broadcasts updates about the Optimism ecosystem, stated that over 300 projects have been deployed on Optimism to date, showing the blockchain’s expansion and rising usage.

Meanwhile, the network’s revenue increased last week, which appeared optimistic. Also, after a brief fall, OP’s daily active addresses increased, indicating that more users were present on the network. As a result, the likelihood of increased network utilization increases. Also, OP’s velocity surged last week, indicating that the asset was being transferred to more wallets.

While a few criteria favored Optimism, its daily chart suggested a significant bearish advantage, which correlated to market sentiment at the time. According to CoinMarketCap. OP’s price has dropped over 14% in the last 24 hours, and it was trading at $1.98 with a market capitalization of more than $624 million at press time.As the graph sank significantly, OP’s Relative Strength Index (RSI) suggested that the price shedding could continue.

The Chaikin Money Flow (CMF), which was also on a downward trend, was similarly affected. The data from the Exponential Moving Average (EMA) Ribbon indicated that the bulls’ advantage was about to come to an end, as it indicated the probability of a bearish crossover in the following days.