Optimism (OP) has opened the year on an upbeat note as it sees a bull run. On the other hand, it has suffered from sluggishness in terms of total locked value (TVL).
Here’s a quick snapshot of optimism:
- OP price increases by 5.76%
- OP down on TVL; now only $500 million
- Users save up to 99.4% ETH
Arbitrum appears to outperform the other leading Layer 2 blockchains, including Optimism and polygon, to have left behind when it comes to TVL. Regardless, the former remains unimpressed as it’s still picking up the pace and dominating L2 space.
🔥 THE TVL BETWEEN UPPER LAYER 2 ON ETHEREUM 🔥
By overcoming #polygon and #optimism, @arbitrum has naturally risen to the top 1 layer 2 in TVL by 2022.
Do you think @arbitrum will be the new home of DeFi? (💙,🧡)? Let’s comment below 👇#Arbitrum #DeFi pic.twitter.com/AAtP0g8e2V
— Arbitrum Space (💙,🧡) (@Arbitrum_Space) January 1, 2023
Optimism on a bull run
Corresponding CoinMarketCapOP price is up 5.76% or trading at $1.02 at press time. On the contrary, it is TVL isn’t too impressive as it’s down $550 million in the last 30 days to just $511 million, which also hurt revenue.
Chart: DeFi Llama
The term “Layer 2” is used to describe an additional framework or protocol that is built on top of an existing Blockchainsystem is implemented.
These methods are designed to solve the transaction throughput and scalability problems that are common in the most well-known Bitcoin-Networks occur.
Crypto Total Market Cap at $778 Billion on Daily Chart | Chart: TradingView.com
Optimism wavered, switching back and forth to higher lows and bullish highs. Obviously, the OP price has increased by as much as 15% overnight and is now in the green with a price range of $1.02.
If the bulls can maintain their optimistic price momentum, the optimism could shoot as high as $1.45 in the coming days.
Can OP overcome the key resistance?
Optimism is seeing increased positive price action as it is forecast to rise as high as $1.53 in the next few weeks and the major ones Resistance will overcome. OP is in an apparent uptrend and might retest the key $1.45 resistance zone.
Meanwhile, when compared to its rivals, Optimism has the ace when it comes to gas efficiency. OOne of the perceived reasons behind the increasing growth in usage on Ethereum is that users can save more ETH by using Optimism.
Chart: Dune Analytics
Optimism was able to use less gas than other L2s despite having a lower TVL and income, as reported by Dune Analytics. The Layer 2 solution also performed better in comparison to Arbitrum.
Customer aggregate savings from using Optimism for transactions also continued to increase. As of this writing, the Ethereum scaling solution has helped its customers save up to 98%.
Chart: Dune Analytics
OP’s network, on the other hand, is faltering in terms of growth, indicating the slump in transactions and new user addresses. In addition, development activity has also decreased, which could hurt the chances of attracting new users.
On a positive note, OP regarding the market capitalization jumped by 6.74%.
-Featured image: The Coin Republic
Source: Crypto News Deutsch