Optimism Drops 12%: Should Investors Still Be Optimistic? These Metrics Say Yes

Optimism has been seeing bearish action since the start of this month. But this week, it has been much worse for investors and traders. According to Coingecko, the token is down more than 12% since last week. Related Reading: Bitcoin On Fire: 20% Surge In 3 Weeks Teases Record-Breaking Potential With a market correction underway, more pain can come to all portfolios carrying OP. However, there are several reasons why investors and traders should still be on board with Optimism. Growing On-chain Use By An Expanding Userbase Price-wise, OP looks like a hard bargain after a month of hard-battering by the bears. However, on-chain data looks vastly different. According to data tracked by Nansen, on-chain growth is booming for Optimism. The platform’s growth as the self-named “Superchain” on Ethereum is working as active addresses continue to ramp up along with transactions, indicating chain-wide usage across its different constituent chains. The platform has also announced several events that potentially impacted this on-chain growth. Optimism is hosting a chain-wise hackathon tomorrow, July 31, contributing to this sudden increase in active addresses on the platform. This should offset any shift in investor confidence as it paints Optimism positively: a platform worthy of development with the support of a growing community.

Jul 30, 2024 - 14:00

Optimism Drops 12%: Should Investors Still Be Optimistic? These Metrics Say Yes

Optimism has been seeing bearish action since the start of this month. But this week, it has been much worse for investors and traders. According to Coingecko, the token is down more than 12% since last week.

With a market correction underway, more pain can come to all portfolios carrying OP. However, there are several reasons why investors and traders should still be on board with Optimism.

Growing On-chain Use By An Expanding Userbase

Price-wise, OP looks like a hard bargain after a month of hard-battering by the bears. However, on-chain data looks vastly different.

According to data tracked by Nansen, on-chain growth is booming for Optimism. The platform’s growth as the self-named “Superchain” on Ethereum is working as active addresses continue to ramp up along with transactions, indicating chain-wide usage across its different constituent chains.

The platform has also announced several events that potentially impacted this on-chain growth.

Optimism is hosting a chain-wise hackathon tomorrow, July 31, contributing to this sudden increase in active addresses on the platform. This should offset any shift in investor confidence as it paints Optimism positively: a platform worthy of development with the support of a growing community.