Optimism is preparing for its final mainnet upgrade next week. This upgrade provides lower protocol and security costs for users on the platform. This led to the ecosystem’s governance token, OP, enjoying a price increase, albeit a modest 3.7% in the past 24 hours.
This price move only came after last month’s dismal performance where OP dropped by more than 30% in the monthly time frame.
With the promise of lower costs along with Ethereum-like security for the upcoming upgrade, we could see OP continue its current bullishness.
Optimism: Laying the foundation for future growth
Touted as the bedrock mainnet upgrade, it aims to improve efficiency to reduce costs for investors on the platform. According to Optimism’s recent blog post, it should be able to increase protocol and security costs by as much as 47%. The upgrade uses channels that are split again to further optimize data compression.
🚀🌐 Layer2 network Optimism is getting ready for the Bedrock Upgrade soon!
💡💎 Learn how this groundbreaking update increases scalability, security, and efficiency for Optimism, and what it means for the future of #Ethereum.#Optimism $OP #Layer2 #EIP1559
— KuCoin (@kucoincom) June 2, 2023
This upgrade also corresponds to Ethereum’s Dencun upgrade, which will reduce on-chain costs due to thanks hardening. Danksharding is a process that makes data blobs available for use by Layer 2 protocols such as Optimism. This improvement would make Optimism more attractive to developers.
OP total market cap currently at $970 million on the weekend chart: TradingView.com
Along with the Bedrock upgrade, the expectant OP Stack Mods that are improvements to the OP Stack layer by community members. These tweaks are up for community vote as an official part of the OP Stack tier.
The upgrade also opens a path for Optimism to include bug proof improvements with community incentives to suggest improvements to the system.
How might this affect the OP price at $1.50?
The token’s current trajectory puts it on a perfect path to higher highs in the coming days. Currently OP bulls are targeting $1.70 medium to long term with a potential to break into the $2 range. Momentum permitting, investors and traders should continue the current price movement for higher profits .
Source: CoinMarketCap
With Bitcoin gaining ground at the time of writing, OP bulls’ gains should increase over the medium term. However, investors should be wary of any bearish advances that may come in the coming days.
The token’s current support at $1.3 has no support that could pull OP into the sub-$1 range. If this happens, OP bulls should be able to weather a potential drop to $0.5 support. But the token’s current momentum is enough for investors to confidently reach higher highs in the coming days.
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