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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.
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.
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