Optimism short-term holders planning to book profit should read this first

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  • Velo­drome, a new DEX on Opti­mism, wit­nessed a 52% uptick in TVL.
  • Despite declin­ing trans­ac­tions and test­net per­for­mance, pos­i­tive indi­ca­tors sug­gest­ed an opti­mistic future for Optimism.

Recent­ly, a new decen­tral­ized exchange (DEX) on the Opti­mism net­work called Velo­drome wit­nessed a 52% uptick in its total val­ue locked (TVL). This sig­nif­i­cant growth in TVL has also had a pos­i­tive impact on the over­all ecosys­tem of Optimism.

Accord­ing to DefiLla­ma, the TVL of Opti­mism has grown from $525 mil­lion to $623 mil­lion over the last month, show­ing an increase of 18%. This growth in TVL is an indi­ca­tion of the increas­ing pop­u­lar­i­ty and adop­tion of the Opti­mism net­work and its protocols.


Real­is­tic or not, here’s OP’s mar­ket cap in BTC’s terms


Source: DefiLla­ma

The devil is in the details

How­ev­er, it’s worth not­ing that the num­ber of trans­ac­tions on Opti­mism has been in decline, accord­ing to Dune Ana­lyt­ics. This could poten­tial­ly affect the increas­ing TVL of Opti­mism in the future. The decreas­ing num­ber of trans­ac­tions might be an indi­ca­tion of a lack of liq­uid­i­ty or a lack of inter­est in the network.

Source: Dune Analytics

In addi­tion, a recent update revealed that Opti­mism wit­nessed degrad­ed per­for­mance on the Goer­li Test­net. This could neg­a­tive­ly impact the per­cep­tion of Optimism.

The degrad­ed per­for­mance could be a result of a lack of scal­a­bil­i­ty or issues with the net­work infra­struc­ture. How­ev­er, it is impor­tant to note that the test­net is only a sim­u­la­tion of the main­net and the per­for­mance on the main­net might be different.

Oth­er pop­u­lar dApps on the Opti­mism net­work, such as Syn­thetix and Odos, have also seen a decline in activ­i­ty. Accord­ing to dApp radar, the num­ber of unique active wal­lets on Syn­thetix fell by 16.85%, and for Odos, the unique active wal­lets fell by 37.39% dur­ing the same peri­od. This decline in activ­i­ty could be an indi­ca­tion of a shift in user pref­er­ences or a lack of new users join­ing the network.


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The state of the Opti­mism token, how­ev­er, remained healthy.

HODLrs stay loyal

Accord­ing to San­ti­ment, the veloc­i­ty of the OP token has declined, along with the MVRV ratio and the long/short dif­fer­ence. This indi­cat­ed that the fre­quen­cy with which OP was being held had decreased.

The grow­ing MVRV ratio sug­gest­ed that most of the OP token hold­ers were prof­itable, while the increas­ing long/short dif­fer­ence implied that most of the address­es that were hold­ing the token were long-term holders.

Source: San­ti­ment

Despite the grow­ing prices, long-term hold­ers were less like­ly to sell their posi­tions. Mean­while, at the time of writ­ing, OP was trad­ing at $2.27, and its price increased by 13.30% in the last 24 hours.

Over­all, while there are some con­cerns about the declin­ing num­ber of trans­ac­tions and degrad­ed per­for­mance on the test­net, the growth in TVL sug­gests a rea­son to be opti­mistic about the future of Optimism.

Last­ly, it shouldn’t be for­got­ten that the new DEX on Opti­mism, Velo­drome, could be a sig­nif­i­cant con­trib­u­tor to the grow­ing ecosystem.



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