Journalist
Posted:
- 19 million OP tokens distributed to more than 31,000 addresses, encouraging participation in the board.
- Price drop of 24.50%, declining social activity, but high user retention offers hope for the future.
Amid a bearish market, the optimism[OP] The protocol is on the rise and the moment has been seized to make an important announcement for an airdrop.
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Airdrops at the right time?
This airdrop, the third OP airdrop, awarded a whopping 19 million OP tokens to more than 31,000 unique addresses. These tokens were intended to reward those who actively participated in the governance of the protocol, embracing a positive sum approach within the Collective.
This third airdrop specifically targeted addresses that have delegated the voting rights of their OP tokens during the period from January 20 to July 20, 2023. This move aims to strengthen community involvement and encourage board participation.
The impact of this airdrop on OP is a double-edged sword. On the one hand, it can be seen as a positive step because it rewards and encourages board participation, fostering a sense of community ownership. Such initiatives often promote a healthier and more engaged ecosystem.
However, there is also a potential disadvantage. The influx of supply could impact sentiment around the token.
OP token sees some red
The price of OP tokens saw a significant drop and plummeted in recent days. Although this correction was substantial, it failed to definitively establish a clear price development. The Relative Strength Index (RSI) suggested some buying momentum exists, but the Chaikin Money Flow (CMF) indicated a substantial decline in money flow. This meant declining interest.
Source: trading view
Social activity around OP also took a hit. Social media mentions fell 79.8% in the past week, accompanied by a 91% drop in engagement. Such a decrease in social activity can often lead to reduced interest and participation, which could negate the intended benefits of the airdrop.
Source: Lunar Crush
State of the protocol
In addition, the protocol’s activity and revenues faced challenges. Active users fell 22.7% last month, while revenue fell 53.1%. However, an interesting trend emerged: the Optimism protocol showed a remarkable ability to retain users. According to Token Terminal, it has managed to retain 30% of its mainnet users over the past 30 days.
Source: token terminal
Realistic or not, here is OP’s market cap in BTC terms
This high retention rate, despite recent challenges, can be seen as a testament to the underlying value and potential of the protocol. It suggested that even in difficult times, Optimism managed to maintain the interest of a significant portion of its user base.