Ethereum

2024

Synthetix

Optimism

USDC

Layer 2 (L2) scaling solution Optimism reported a series of strong network metrics in the first quarter (Q1) 2024, with its native OP token surging 9% on the back of this bullish momentum. 
<h2 id="optimism-sees-higher-activity-and-rising-transaction-fees">Optimism Sees Higher Activity And Rising Transaction Fees</h2> 
According to a recent Messari <a href="https://messari.io/report/optimism-q1-2024-brief" target="_blank" rel="noopener nofollow">report</a>, Optimism’s circulating market cap increased 11% quarter-over-quarter (QoQ) to $3.7 billion, while its fully diluted market cap rose 1% to $15.7 billion.&nbsp; 
Despite the broader <a href="https://www.newsbtc.com/analysis/btc/bitcoin-breaks-free-63500/" target="_blank" rel="noopener ">crypto market rally</a>, with Bitcoin (BTC) and Ethereum (ETH) gaining 69% and 53% QoQ, respectively, OP’s market cap ranking slipped from 26th to 39th among all blockchain networks. However, within the Ethereum ecosystem, OP remains one of the top four rollups by market capitalization. 
<img loading="lazy" decoding="async" class="size-large wp-image-608680" src="https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_125.jpg?w=860&amp;resize=860%2C427" alt="Optimism" width="860" height="427" srcset="https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_125.jpg?w=865 865w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_125.jpg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_125.jpg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_125.jpg?w=860&amp;resize=860%2C427 860w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_125.jpg?w=360 360w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_125.jpg?w=750 750w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
Driving this growth was a significant uptick in Optimism network activity. Daily active addresses reached 89,000 in Q1 2024, a 23% QoQ increase, while daily transactions surged 39% to 470,000 over the same period. These metrics approached, but did not quite reach, their <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-whales-quiet-down-heres-why-and-what-it-means-for-the-market/" target="_blank" rel="noopener ">all-time highs</a> in Q3 2023. 
The network’s revenue also saw a substantial 78% QoQ increase to $16 million, driven by higher activity and a 48% rise in the average transaction fee to $0.42. However, this average fee dropped significantly in the latter half of March due to the implementation of Ethereum Improvement Proposal (EIP) 4844, which reduced L1 submission costs by 99%. 
<h2 id="total-value-locked-jumps-18-in-q1">Total Value Locked Jumps 18% In Q1</h2> 
Despite the fee reduction, Optimism’s on-chain profit for Q1 2024 increased 14% QoQ to $2 million. The network’s Total Value Locked (TVL) also grew by 18% to $1.2 billion, though its TVL ranking among all networks fell to 11th place. 
Within Optimism’s TVL, the <a href="https://www.newsbtc.com/news/bitcoin/most-important-bitcoin-indicator-nears-bullish-flip/" target="_blank" rel="noopener ">DeFi sector </a>dominated, accounting for 86% of active addresses. According to Messari, non-fungible token (NFT) applications and gaming followed with 6.9% and 6.7%, respectively.&nbsp; 
TVL’s leading protocols included Synthetix ($307 million, +4% QoQ), Aave ($270 million, +52% QoQ), and Velodrome ($171 million, +10% QoQ). 
Optimism’s stablecoin market capitalization also grew significantly, reaching $809 million (+32% QoQ) by the end of Q1 2024. Circle’s USDC stablecoin and Tether’s USDT made up most of this, with USDT seeing a 64% QoQ surge to $512 million, or 63% of the total <a href="https://www.newsbtc.com/xrp-news/crypto-analyst-xrp-price-explosion-over-18/" target="_blank" rel="noopener ">stablecoin market cap </a>on Optimism. 
<img loading="lazy" decoding="async" class="wp-image-608679 size-large" src="https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_126.jpg?w=832&amp;resize=832%2C430" alt="Optimism" width="832" height="430" srcset="https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_126.jpg?w=832&amp;resize=832%2C430 832w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_126.jpg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_126.jpg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/05/Screenshot_126.jpg?w=750 750w" sizes="(max-width: 832px) 100vw, 832px" data-recalc-dims="1"> OP Rebounds Alongside Crypto Market Resurgence 
Despite Optimism’s strong performance across key metrics in Q1 2024, the network’s native token, OP, did not see a corresponding price increase at the end of Q1. Instead, OP followed the broader <a href="https://www.newsbtc.com/chainlink-news/chainlink-crypto-winner-19-rally-driving/" target="_blank" rel="noopener ">market downtrend</a>, hitting an annual low of $1.80 just one month after hitting an all-time high of $4.84 in March.&nbsp; 
However, OP has followed suit as the overall cryptocurrency market has seen a resurgence of bullish momentum in the past few days. In the past 24 hours, the token has recorded a 9% price increase and a 3% uptick in the past week, currently trading at $2.56.&nbsp; 
Furthermore, CoinGecko <a href="https://www.coingecko.com/en/coins/optimism" target="_blank" rel="noopener nofollow">data </a>shows a 19% increase in OP’s trading volume over the past 48 hours, reaching $290 million. 
<img loading="lazy" decoding="async" class="size-large" src="https://www.tradingview.com/x/8H1dvpGE/" alt="Optimism " width="1815" height="858"> 
While this <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-bulls-warming-up-as-spot-etf-inflows-exceeds-1-3-billion-in-2-weeks/" target="_blank" rel="noopener ">renewed bullish sentiment</a> is encouraging, OP still trades 46% below its all-time high and faces significant resistance levels soon before a potential retest of this milestone.&nbsp; 
The first key resistance is at $2.65, followed by $2.90, which must be overcome before the token can push towards the $3.00 level. Conversely, the $2.34 support level has proven crucial and must be monitored closely in case of any bearish resurgence.&nbsp; 
Featured image from Shutterstock, chart from TradingView.com

Optimism Network Activity Metrics Approach Record Levels, Propelling OP 9% Higher

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