The layer-2 network Optimism (OP) has witnessed a significant reduction in transaction volume recently. Daily active addresses have declined considerably, which has adversely affected network revenues. Despite this, the ongoing market rally has bolstered the total value locked (TVL) in the decentralized finance (DeFi) sector.
What Are the User Trends?
According to data from Artemis, user demand for Optimism has been on a downward trajectory over the past 30 days. Unique addresses engaging in at least one transaction on the network have dropped by 45% in this period.
This decline in user numbers has also led to a reduction in daily transactions. Artemis’s data indicates a 31% drop in the transaction rate during the review period.
How Have Revenues Been Affected?
The decrease in user activity and a 6% fall in OP’s value have caused a sharp decline in network fees and revenue. On July 17, network fees amounted to $61,600, a significant drop from the previous month’s $208,000.
On-chain data reveals that revenue from the Optimism network has plummeted by 65%.
Key Takeaways
The following insights can be drawn from the current trends:
- Optimism’s daily active addresses have decreased by 45% in the last 30 days.
- Transaction volume on the network is down by 31%.
- Network fees dropped from $208,000 to $61,600 within a month.
- Revenue from the network has fallen by 65%.
Future of OP Price
OP’s price has been trading within a specific range recently, indicating a new channel formation after a rising channel between July 5-15. The price is just above established resistance, buoyed by Bitcoin‘s surge past $67,000.
OP has surpassed the $1.88 resistance level and seems to move away from the $1.84 support level, reaching $1.93 after breaking resistance. However, if the trend reverses, the price could drop back to $1.60.