Over 80% of Optimism (OP) Token Holders Stay Profitable Amid Market Turbulence: Data

The beginning of this week saw a decline in the overall market capitalization of cryptocurrencies, dropping from $1.6 trillion to $1.5 trillion, indicating a day-on-day decrease of over 5%.

This market downturn did not spare the native token of the Ethereum-based layer-2 Optimistic Rollup network, OP. Due to the broader market decline, OP incurred weekly losses of over 20%. Despite this, a substantial number of token holders maintained a profitable position.

Optimism (OP) Poised for More Growth?

According to the most recent analysis by Intotheblock, over 80% of OP token holders fall into this category.

Despite suffering a price decrease of nearly 20% in the last 7 days, over 80% of $OP holders remain in profit.
🔗https://t.co/lmTUjhZFx4 pic.twitter.com/3hlFNbG95b

— IntoTheBlock (@intotheblock) January 24, 2024

Such a trend is viewed as positive for the crypto asset, indicating the resilience of long-term investors who have navigated through the market’s volatility. It also underscores investor confidence for sustained growth in the future.

The layer 2 scaling solution has witnessed massive growth over the past year, closely following its rival Arbitrum.

A major turning point for Optimism was its Bedrock hard fork implemented on June 6 last year. The Bedrock upgrade was one element of a comprehensive set of proposals aimed at establishing a “Superchain” comprising multiple blockchain networks that share the same software for enhanced security and interoperability.

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The primary goals of the Bedrock upgrade were to decrease deposit times and fees while bolstering the network’s security. Following the hard fork, Optimism experienced a notable surge in transactions while volume followed suit.

Network Resurgence

Diving deeper into ITB’s data suggests that Optimism has recorded a significant number of large transactions in recent weeks. The figure spiked to 421 on January 12th, a level not seen in almost a year.

Additionally, the total number of addresses holding some amount of balance has exceeded a million for the first time. Over the past three months, the consistent creation of new addresses has remained above 1.34k. This heightened user activity presents a positive and bullish outlook.

On the network side, a similar trend is observed, with Optimism’s increased development activity reflected in its entrance into the top 10 crypto assets with noteworthy GitHub commits in December.