OP and Optimism — Is a new ATH in the works now

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Fol­low­ing the lat­est mar­ket recov­ery, we are look­ing at a very sun­ny cryp­to-sum­mer. In the mix is the OP token, with the same tread­ing around its all-time high on 4 August. The then-peak of $2.17 with the OP bulls is in full swing today. The token was trad­ing at $2.0, at press time, with a mod­est 3% surge over the last few hours. This puts Opti­mism in pole posi­tion to redraw the all-time high for its gov­er­nance token.

Becoming optimistic

The Opti­mism pro­to­col has grown tremen­dous­ly over the past month or so. It has fur­ther been uplift­ed with the over­all appraisal of Lay­er 2s in 2022, despite bear­ish head­winds. OP token rewards are avail­able in three pro­to­cols (Aave, Velo­drome, and PoolTo­geth­er) with fur­ther expan­sion underway.

More­over, around 10.8% of the cir­cu­lat­ing sup­ply of the OP token is allo­cat­ed to their gov­er­nance and part­ner funds. This fund, worth approx­i­mate­ly $890 mil­lion, will be used to grow the ecosys­tem. This, along with 14% of the sup­ply (worth $1.15 bil­lion) for future air­drops, is like­ly to dri­ve fur­ther usage of Optimism’s network.

Source: IntoThe­Block

The growth of Opti­mism is reflect­ed in the expan­sion of its top-ranked pro­to­cols. In fact, these pro­to­cols are begin­ning to see whale accu­mu­la­tion in recent days. Aave became the top-ranked pro­to­col on Opti­mism by TVL. Whales hold­ing between 10k and 100k AAVE increased their hold­ings by 8.2% since the June bottom.

Anoth­er inter­est­ing devel­op­ment is the dra­mat­ic price surges on top Opti­mism pro­to­cols. AAVE’s price has appre­ci­at­ed by 120% since its June bot­tom. Oth­er pro­to­cols such as Syn­thetix (SNX) and Uniswap (UNI) climbed by 180% and 170%, respectively.

Source: IntoThe­Block

What’s behind the mask?

Optimism’s growth has a fun­da­men­tal basis in the increas­ing devel­op­er activ­i­ty of the ecosys­tem. The release of the Bedrock roll­out has gripped users which are deemed as the “most advanced roll-up design ever built.”. Bedrock aims to “squeeze out every last drop” of gas sav­ings when pub­lish­ing trans­ac­tion data to Ethereum. It will be the only roll-up design to use Ethereum’s Engine API for consensus/execution client separation.

In fact, in a recent thread, Opti­mism also announced the release of new NFTs launched this week.

Conclusion

Opti­mism is scal­ing new heights after improv­ing mar­ket con­di­tions boost­ed the ecosystem’s growth. The devel­op­er activ­i­ty on the pro­to­col has fur­ther risen on the back of Optimism’s strong foun­da­tions. Hence, OP is now surg­ing to break its ATH set over four days ago. There is good rea­son to be opti­mistic about Opti­mism right now.



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