Should Optimism [OP] holders rejoice with Ethereum’s Merge coming up

Optimism’s OP was not left behind as the remainder of the market registered double-digit value upticks over the previous week. Actually, in response to CoinMarketCap, the worth of the Layer 2 (L2) token rallied by 16% during the last seven days. 

Designed as an optimistic rollup community to boost the scalability of the Ethereum Chain, Optimism ranks second as essentially the most used L2 resolution supplier. It’s behind Arbitrum with a complete worth locked of $1.60 billion.

In a Twitter thread shared on 8 September, Optimism confirmed that the transition of the Ethereum Community to a PoS consensus mechanism wouldn’t have an effect on its operations, and deposits & withdrawals on the community will proceed to “work as traditional.” It additional added that upon the completion of the merge, its transaction knowledge and state roots can be posted to the PoS chain. Additionally, its nodes would proceed to “learn knowledge from the post-Merge chain.”

OP-timistic buyers

On the time of writing, 1 OP token was obtainable for $1.37. Over the previous week, buying and selling quantity for the cryptocurrency asset grew by 109% on the charts.

Larger liquidity was additionally pushed into the OP market inside the interval underneath evaluate as key indicators rose above their respective impartial positions. At press time, the Cash Circulation Index was 62. The asset’s Relative Power Index was additionally positioned at 54. The dynamic line of the Chaikin’s Cash Circulation was pegged at 0.02, above the 0.0 middle line indicating progress in shopping for strain. 

Supply: TradingView

On-chain efficiency

With the proposed launch of Optimism’s EIP-4844 and Optimism Bedrock forward of the Ethereum Merge, it’s no shock that growth exercise on the community has grown over the previous few months. In response to Santiment, this has seen a 23% hike within the final 180 days. 

With an expectation of appreciable progress within the value of the L2 token post-merge, whales have regularly elevated their OP holdings too. In consequence, addresses holding between 1,000,000 to 10,000,000 OP tokens stood at 3.14% of all addresses holding the crypto-asset.

4 months in the past, this was 2.86%.

Supply: Santiment

With the L2 ecosystem changing into more and more aggressive, Optimism’s each day income has declined steadily within the final 180 days. In response to knowledge from Token Terminal, each day income on the community has dropped by 29% within the final 180 days, 76% within the final 90 days, and 26% previously 30 days. 

Actually, compared with different L2 resolution suppliers reminiscent of dYdX and Loopring, Optimism’s each day income has been essentially the most inconsistent during the last 30 days.

Supply: Token Terminal

L2s post-merge

On the affect of the Ethereum Merge of L2 resolution suppliers, many trade consultants consider that L2s will proceed to perform as traditional. In a latest interview, as an example, the CTO of Bitfinex Paolo Ardoino opined that “It is going to be enterprise as traditional for L2s.”

In response to Anton Gulin, International Enterprise Director at AAX Trade, with the Merge, “the remainder of the L2s would both adapt or seize to exist.”