Ethereum L2 Demand Increases, Optimism Token Hits Record High

1 year ago 83

OP token updated ATH

Ethereum (ETH)’s L2 network Optimism’s crypto asset (virtual currency) OP hit a record high of $ 2.48 (300 yen) on the 26th. It is ranked 78th in the cryptocurrency market with a market capitalization of $506 million (66.2 billion yen). After hitting a new all-time high, the stock fell 8% today from the previous day.

OP token is up 150% from 120 Yen at the beginning of the year, well above the year-to-date gains of Bitcoin (BTC) and Ethereum (ETH) (39% and 33%).

Source: CoinGecko

According to data site Etherscan, daily trading volume on the Optimism network surged to a record high of 800,000 transactions on January 12th, and calmed down to about 200,000 transactions per day on the 17th.

The main reason for this is the campaign “Optimism Quests” that was held from September to January 17th, and limited NFTs (Non-Fungible Tokens) were granted after completing a prescribed action in an application on Optimism.

Source: Delphi Digital

It is believed that speculation that this event will lead to additional airdrops of OP tokens has increased. Optimism launched its token in May 2022 and conducted its first airdrop between the end of May and June, but indicated a policy to continue after that.

Relation:Ethereum L2 “Optimism” Launches OP Token

A similar campaign was run by Optimism competitor Arbitrum. The Arbitrum Odyssey, launched in June 2010, was causing a spike in usage on the Arbitrum network. Arbitrum has yet to launch a governance token.

Source: Delphi Digital

Rise of Layer 2

Optimism and Arbitrum are Layer 2 networks that use Optimistic Rollup to provide a scaling solution for Ethereum. The second layer is being developed because processing transactions on Ethereum alone can lead to heavy loads, slow processing speeds, and skyrocketing network fees.

On January 12th, Arbitrum and Optimism surpassed Ethereum in total L2 transactions for the first time.

Ethereum co-founder Vitalik Buterin points out that the L2 scaling solution “Rollup” will reach an important milestone in 2023. EIP-4844, which further reduces L2 transaction fees, is also expected to be implemented on Ethereum within the year.

Relation:Ethereum Co-Founder Vitalik Bullish on Rollups in 2023

With the launch of the OP token in May 2022, Optimism’s TVL (total deposit) has skyrocketed to $687 million (89.3 billion yen) at the time of writing (data: DeFillama). Meanwhile, Arbitrum’s TVL is $1.17 billion (¥150 billion), occupying the top two spots in the Ethereum L2 category.

The largest dApps (decentralized app) on Arbitrum is DEX (decentralized exchange) GMX, which supports leverage and spot trading. TVL is $434 million and governance token GMX is 96th in the market with a market capitalization of $422 million.

In addition, Gains Network (GNS), which applies the mechanism of GMX, is running on another Ethereum L2 “Polygon (MATIC)” and has soared by 72% in the past 14 days.

Relation:Financial market tankan on the morning of the 3rd | NY Dow rises slightly, Arbitrum’s DeFi stock “GMX” continues to rise

The largest dApp on Optimism is DEX’s Velodrome, with TVL at $126 million, up 50% month-on-month. Governance token VELO ranks 821st in the market with a market capitalization of $14 million, up about 42% over the past 14 days. The Velodrome is optimized for the purpose of getting more OP airdrops.

GM Radio “zkSync”

Here is the first GM radio archive of the year that was delivered yesterday.

Don’t forget, #GMRadio with @zkSync‘s Head of Engineering, @anthonykrose is on in approx. 24 hours!

We’ll be talking about Ethereum scaling, pros/cons of ZK rollups, decentralization with/without a token, Anthony’s background at SpaceX, and much more!https://t.co/7B9Zj6UW4F

— CoinPost Global (@CoinPost_Global) January 25, 2023

Special guest this time is Mr. Anthony Rose, Head of Engineering at Matter Labs. The company is developing Ethereum (ETH) L2 solution “zkSync”. Matter Labs is developing a technology to improve the scalability of Ethereum by utilizing cryptographic technology called zero-knowledge proofs. On the radio, he talked about the strengths and challenges of ZK Rollup and the future prospects of zkSync.

Relation: This year’s first GM Radio will be held, guests will be Ethereum L2 “zkSync” development company executives

Click here to watch the archive of the previous episode, including Yat Siu, chairman of Animoka Brands.

Reminder: Our 2nd #GMRadio starts in 30 min (24:00 UTC / 19:00 EST / 9:00 JST)

Tune in to hear about “Leading The Open Metaverse With Innovative Blockchain Games” with @ysiuExecutive Chairman of @animocabrands and @Ben_CharbitCEO of @Darewise!https://t.co/nr8dNhMpBM