Layer 2 (L2) scaling solution Optimism reported a series of strong network metrics for the first quarter (Q1) of 2024, with its native OP token surging 9% on the back of this bullish momentum.
Optimism is seeing higher activity and rising trading fees.
According to Messari recently: reportOptimism’s circulating market capitalization increased 11% quarter over quarter to $3.7 billion, while its fully diluted market capitalization increased 1% to $15.7 billion.
Despite being wider Cryptocurrency Market RallyAs Bitcoin (BTC) and Ethereum (ETH) rose 69% and 53%, respectively, compared to the previous quarter, OP’s market capitalization ranking fell from 26th to 39th among all blockchain networks. However, within the Ethereum ecosystem, OP remains one of the top four rollups by market capitalization.
Driving this growth was a significant increase in Optimism network activity. In the first quarter of 2024, daily active addresses reached 89,000, a 23% increase compared to the previous quarter, while daily transactions surged 39% to 470,000 during the same period. These indicators are approaching but not yet reached. Best ever In the third quarter of 2023.
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Network revenue also increased 78% quarter-over-quarter to $16 million, driven by increased activity and a 48% increase in average transaction fees of $0.42. However, this average fee dropped significantly in late March due to the implementation of Ethereum Improvement Proposal (EIP) 4844, which reduced L1 submission costs by 99%.
Total fixed value increased by 18% in the first quarter
Despite the fee reduction, Optimism’s Q1 2024 on-chain profit increased 14% QoQ to $2 million. The network’s Total Value Locked (TVL) also increased 18% to $1.2 billion, but its TVL ranking among all networks fell to 11th.
Within Optimism’s TVL DeFi sector It accounts for 86% of active addresses. According to Messari, Non-Fungible Token (NFT) applications and games followed at 6.9% and 6.7%, respectively.
TVL’s leading protocols included Synthetix ($370 million, +4% QoQ), Aave ($270 million, +52% QoQ), and Velodrome ($171 million, +10% QoQ).
Optimism’s stablecoin market cap also increased significantly, reaching $809 million (+32% QoQ) by the end of Q1 2024. Circle’s USDC stablecoin and Tether’s USDT accounted for the majority of this, with USDT surging 64% QoQ to $512 million, or 63%. of everything % Stablecoin market capitalization About optimism.
OP rebounds with the revival of the cryptocurrency market
Despite Optimism’s strong performance across key metrics in Q1 2024, the network’s native token, OP, did not see a corresponding price increase at the end of the first quarter. Instead, the OP went with a broader scope. market downtrendAfter hitting an all-time high of $4.84 in March, it hit an annual low of $1.80 just one month later.
However, as the overall cryptocurrency market has seen a resurgence of bullish momentum over the past few days, OP has followed suit. In the last 24 hours, the token has recorded a 9% price increase and a 3% increase in the past week, and is currently trading at $2.56.
Plus CoinGecko data It shows that OP’s trading volume has increased by 19% in the last 48 hours, reaching $290 million.
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During this new bullish sentiment This is encouraging. Operating profit is still trading 46% below its all-time high and faces significant resistance levels just before a potential retest of this milestone.
The first major resistance is $2.65 and then $2.90, which must be overcome before the token heads towards the $3.00 level. Conversely, the $2.34 support level has proven to be very important and should be monitored closely in case the downtrend reemerges.
Featured image from Shutterstock, chart from TradingView.com