Why Optimism’s growth has Worldcoin, Farcaster written all over it

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  • Opti­mism beat Base and Arbi­trum to have the high­est share of active addresses.
  • Net­work Growth fell while Social Vol­ume moved sideways.

AMBCryp­to can con­firm that projects like World­coin [WLD] and Far­cast­er were instru­men­tal to Optimism’s [OP] increase in net­work activity.

Over the last few months, active address­es on Optimism’s Main­net have had a 60% share when com­pared to oth­er opti­mistic rollups.

Accord­ing to data from IntoThe­Block, the rise in user activ­i­ty was because of these two projects deployed on the OP Mainnet.

Allowing deployment takes OP far

Worldcoin’s com­mit­ment to Opti­mism dates as far back as 2020. But at the time, Ethereum [ETH] scal­ing solu­tions were not yet mainstream.

How­ev­er, when World­coin migrat­ed ful­ly to the net­work in July 2023, trac­tion increased.  For Far­cast­er, its impact has been more recent.

For those unfa­mil­iar, Far­cast­er is a decen­tral­ized social media pro­to­col. Unlike most social plat­forms, the project’s focus is on user auton­o­my, inter­op­er­abil­i­ty, and pri­va­cy, and was devel­oped on Optimism.

Though still in the Beta phase, some ear­ly users of the project have termed it a good alter­na­tive to X (for­mer­ly Twitter).

Farcaster’s intro­duc­tion to the com­mu­ni­ty comes as the demand for more user-con­trolled social plat­forms climbed.

Accord­ing to Dune Ana­lyt­ics, Dai­ly Active Users (DAU) on the pro­to­col have seen an amaz­ing increase. At press time, the total num­ber of users was about 171,678.

Daily active users on the Farcatser network on Optimism

Source: Dune Analytics

Oth­er met­rics includ­ing rev­enue, stor­age num­bers, and rev­enue have also been grow­ing. Con­se­quent­ly, an increase in Farcaster’s active users meant an increase in activ­i­ty for Opti­mism, too.

AMBCryp­to went on to check if this growth has affect­ed oth­er met­rics regard­ing the L2.

Ups and downs, but that’s not all

The first met­ric we looked at was the social vol­ume. Accord­ing to San­ti­ment, OP’s social vol­ume had main­tained a rel­a­tive­ly good read­ing in the last 90 days.

This implied that search and inter­ac­tion around the project have been rel­a­tive­ly okay. In terms of Net­work Growth, the sit­u­a­tion has been similar.

At some point, the met­ric hit new peaks. The increase dur­ing these peri­ods sug­gests that adop­tion was increas­ing, and new address­es were mak­ing their first trans­ac­tions on the network.

How­ev­er, press time data showed that the Net­work Growth had fallen.

Chart showing the rise and fall of Optimism's network activity and social metrics

Source: San­ti­ment

Should the Net­work Growth con­tin­ue to decrease, OP’s dom­i­nance among the rollups might also shrink.

How­ev­er, if the num­ber of new entrants into the net­work does oth­er­wise, the 60% active users’ share might increase.  When it comes to OP’s price, not much has hap­pened in the last 24 hours.

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

But data from Coin­Mar­ket­Cap showed that the price increased by 16.41% in the last sev­en days. As of this writ­ing, the val­ue of OP was $3.52.

In the mean­time, OP’s price might gain from an increase in active address­es, as it could serve as a bull­ish indi­ca­tor for the token.

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