The overall cryptocurrency market capitalization experienced a drop from $1.6 trillion to $1.5 trillion at the beginning of the week, indicating a potential daily decline of over 5%. This downturn also affected the Ethereum-based Layer-2 Optimistic Rollup network’s native token, OP, which saw a weekly loss exceeding 20%. Despite this, a significant number of token holders remained profitable, with more than 80% of OP token holders in the money according to the latest analysis by Intotheblock, suggesting resilience among long-term investors and confidence in the cryptocurrency’s sustainable growth.
Optimism, a Layer 2 scaling solution, witnessed significant growth last year, closely following its competitor Arbitrum. A milestone for Optimism was the Bedrock hard fork implemented on June 6, which aimed to create a “Superchain” composed of multiple blockchain networks sharing the same software for enhanced security and interoperability.
Following the Bedrock upgrade, Optimism saw a notable increase in transactions and volume. Intotheblock’s data reveals a significant number of large transactions recorded recently, with the count reaching 421 on January 12, a level not seen in nearly a year. Additionally, the total number of addresses holding a balance surpassed one million for the first time.
Over the past three months, the rate of new address creation consistently remained above 1,34 thousand, indicating a positive and bullish outlook due to increasing user activity. On the network side, Optimism’s growing development activity is reflected in its entry into the top 10 crypto assets by notable GitHub commitments in December.