An ‘Optimism’ outperformance — Will OP join in?

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  • Opti­mism does bet­ter than oth­er lay­er 2 chains in terms of net flow. Pro­to­col man­ages to retain a high­er num­ber of users.
  • OP’s price con­tin­ues to decline, how­ev­er, whales show sud­den interest.

Opti­mism has been hav­ing a tough time com­pet­ing in the L2 space as com­peti­tors such as Arbi­trum and Poly­gon have been dom­i­nat­ing the mar­ket over the last few months. How­ev­er, it appears that Opti­mism start­ed to gain its foot­ing in the L2 space yet again and has been out­per­form­ing oth­er L2 solu­tions in some areas.

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

On the brighter side

Accord­ing to data pro­vid­ed by ana­lyst Dynamo Patrick, Opti­mism ranked num­ber 1 in terms of net bridge flow. For con­text, net bridge flow in cryp­to refers to the move­ment of dig­i­tal assets between dif­fer­ent blockchain net­works or bridges.

In the last week, Optimism’s net flow reached a total of $57.1 million.

The spike in net flow on the Opti­mism pro­to­col could be attrib­uted to the grow­ing num­ber of users on the net­work. Not only were new users being onboard­ed to Opti­mism, but they were choos­ing to stay as well.

This was show­cased by Dune Ana­lyt­ics’ data which indi­cat­ed that Optimism’s user reten­tion began to surge over the last few days. At press time, the week­ly reten­tion for new users on Opti­mism was around 17.3%.

Source: Dune Analytics

How­ev­er, the OP token didn’t see the same growth as its pro­to­col. Since 15 April, the price of OP declined by 43.64%. At press time, OP was trad­ing at $1.596 after fluc­tu­at­ing between the $1.867 and $.494 resis­tance and support.

The Rel­a­tive Strength Index (RSI) of OP expe­ri­enced a sig­nif­i­cant and con­sis­tent decline over the past few days. It reached a val­ue of 40.72 at the time of writ­ing. Con­verse­ly, the Chaikin Mon­ey Flow (CMF) dis­played a con­trast­ing pat­tern by con­tin­u­ous­ly increas­ing, with a record­ed val­ue of 0.13.

This sug­gest­ed that despite the weak­en­ing momen­tum indi­cat­ed by the RSI, there was still a demand for OP, pos­si­bly from new buy­ers or insti­tu­tion­al investors.

Source: Trad­ing View

The vol­ume with which OP was being trad­ed, also declined dur­ing this month. How­ev­er, there was a spike in the num­ber of whale trans­ac­tions for the OP token. If whales con­tin­ue to show inter­est and accu­mu­late more OP, it could have a pos­i­tive impact on the OP token going forward.

Read Optimism’s Price Pre­dic­tion 2023–2024

Source: San­ti­ment


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