Journalist
Posted:
- Optimism saw an increase in DEX volume.
- OP’s price remained unaffected, but network growth declined.
Although the Tier 2 sector has become competitive and busy over the past year, there is optimism [OP] has shown its resilience.
A sudden spike
In the past week, the Optimism DEX saw a massive 1,800% increase in weekly trading volume, to over $12 billion, shattering previous records and even surpassing Ethereum. [ETH].
However, it is important to note that this increase was mainly influenced by a vulnerability attack on KyberSwap, which involved a transaction volume of $11 billion. This incident contributed to the overall spike in trading activity on the Optimism DEX.
Despite the extraordinary growth, the circumstances behind this increase must be taken into account to understand the full picture of the increased trading volume.
After that sudden spike, DEX volumes on Optimism dropped. However, the TVL on Optimism continued to grow steadily. This suggested that despite the decline in DEX volumes, network growth in the DeFi space continued to rise.
Source: Artemis
How has the price been affected?
Despite these events, OP’s price remained relatively stable. At the time of writing, OP was trading at $1.80660. In the last 24 hours, the token grew by 0.65%, but no significant changes were seen. However, network growth around OP declined.
The drop in this metric suggested that new addresses were starting to lose interest in OP. Moreover, the speed around OP also decreased. This showed that the number of times OP was traded had also decreased.
This could mean that the addresses kept their OP and current holders collected more tokens. However, interest from old token holders alone may not be enough to push OP’s price further.
Source: Santiment
However, new governance proposals on optimism could attract users to the protocol in the future.
In this proposal, xToken Terminal and Gamma Strategies teamed up for an OP token liquidity boost on Optimism’s Uniswap [UNI] Q3. They are looking for 900,000 tokens for a 24-week subscription, divided among providers
The proposal advocates liquidity mining for a robust foundation, with evenly distributed tokens.
Is your portfolio green? look at the OP profit calculator
In this context, liquidity mining means rewarding people who provide liquidity to the OP token on Uniswap V3. People who add their OP tokens to the trading pool will receive additional tokens as a reward.
This encourages more people to participate and keeps the trading pool healthy.