The trading volume of Optimism‘s token, OP, has recently increased. This surge of attention indicated that the Optimism approach was gaining traction. It was further emphasized by OP’s domination in Uniswap trading pairings.
Messari statistics show that three of the top five trading pairs on Uniswap V3 feature OP as a trading pair, which is a significant development.
However, OP’s supremacy may not continue for long since several variables may have a detrimental influence on the future of the Optimism Protocol and its coin.
One of these effects is the decrease in L2 gas consumption. This decrease in petrol use might result in less activity on the Optimism network, which would have a detrimental influence on the protocol.
Another issue that may influence the process is the expiration of the Optimism Quest NFT collection. The collection, a four-month incentive campaign, attracted many users to the Optimism protocol, but once it finished, the protocol struggled to attract new users.
As a result, the number of unique active users swapping Optimism NFTs has decreased, which is cause for concern.
The protocol’s income decreased due to a decrease in the number of users and activity on the Optimism network.
According to token terminal statistics, Optimism’s income dropped 48.6% in the previous 24 hours. This drop in income indicates that the protocol’s expansion may be slowing.
It should be noted that the OP token’s network expansion slowed after February 2nd. OP holders who intend to go long should consider this a significant red flag.
In addition, the number of daily active addresses has reduced. This decrease in token activity might portend a lousy future for OP.
There is, however, still hope for the Optimism protocol. The recently suggested Bedrock update has the potential to enhance the protocol while also attracting new users. As a result, public opinion is shifting in favor of the procedure.
If the Bedrock update is successful, it may assist the Optimism protocol in recovering from its bearish state.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.