Optimism outshines other L2s: How did OP react?

• OP’s fees and revenue went down over the last few days. 
• Its price action was bullish, as were a few of the on-chain metrics.

After a drop, Optimism [OP] once again became the L2 market leader, beating Ethereum [ETH] in a key metric. The metric not only put OP at the top of the leaderboard but also suggested that L2’s adoption and network activity were again picking up pace. 

Read Optimism’s [OP] Price Prediction 2023-24

While Optimism outshined others in terms of network activity, its price action also looked pretty promising.

Optimism is getting back on track

After a dip, Intotheblock’s recent tweet revealed that optimism once again became the top LE on Ethereum in terms of active addresses. This clearly revealed that the L2 witnessed a surge in usage over the past few days.

Optimism retook the lead as Ethereum Layer 2 this week with the most active addresses.
🔗https://t.co/7K38CEsn33 pic.twitter.com/Y7Lz9wlG5v

— IntoTheBlock (@intotheblock) October 29, 2023

However, it was interesting to note that while OP’s active addresses increased, its daily transactions chose to move the other way around. This was evident from Artemis’ data, which pointed out that OP’s daily transaction count dropped over the last week.

Apart from transactions, OP’s fees and revenue also moved southward in the recent past, which looked concerning.

Source: Artemis

Interestingly, though OP seemed to have been picking up pace in terms of active addresses, it continued to be behind one of its major competitors, Arbitrum [ARB].

Notably, Artemis’ data revealed that both ARB’s active addresses and daily transactions remained relatively higher than those of OP. A similar trend was also seen in terms of their DEX volume.

Source: Artemis

Optimism bulls are performing well

While this happened, OP’s price action turned bullish thanks to the bullish market condition. As per CoinMarketCap, OP was up by more than 7% over the past week. In fact, in just the last 24 hours, OP’s price surged by over 2%.

At the time of writing, it was trading at $1.40 with a market capitalization of over $1.2 billion. A possible reason behind this could be OP’s increase in MVRV ratio over the last few days.

Its network growth also remained high, meaning that more new addresses were created to trade the token.

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

Another positive metric was Optimism’s Development Activity, which rose. This suggested that developers were putting more effort into improving the blockchain.

Surprisingly, despite a hike in price, OP’s Price Volatility 1w dropped in the recent past. Its Social Volume also fell, meaning that its popularity in the crypto space declined over the last week.

Source: Santiment