The Layer 2 protocol Optimism (OP), which is built on Ethereum, is displaying a measure that illustrates its relative fading. Data from IntoTheBlock shows that just 29.27% of all Optimism addresses are now profitable.
Optimism address by the numbers
EtheThis proportion equates to about 178,820 addresses, per data insight. The total number of wallets or holders of OP that are now experiencing losses negated this statistic. In conclusion, this number exceeded 418,300 and accounted for 68.49% of all addresses hosted on the Optimism network.
Optimism came into the ecosystem of digital currencies as a high flyer with the ideal invention to assist exponentially increase transactions on Ethereum. Optimism, the de facto L2 scaling pioneer on Ethereum, overcame Polygon thanks to its optimistic rollup methodology.
Other Layer 2 protocols that have emerged, such as Arbitrum, Polygon, zkEVM, and zkSync, have unfairly competed with Optimism. The appeal of OP as a token for utility and investment has drastically diminished due to users sharing relevance.
The token’s value is $1.7528, down 2.69% in the last day and more than 16% in the last seven days. The 61.74% decline from its all-time high (ATH), obtained around a year ago, was as the catalyst for the decline in value that resulted in significant addresses losing money.
Potential short-term remedy
Investors are intrigued by the potential usefulness that a protocol like Optimism offers, but they are also curious about how its underlying asset’s price has performed over time. Most retail investors are currently fixated on the meme coin frenzy that has propelled coins like PEPE to incredible heights.
Despite the fact that Optimism is on pace with its long-term growth push, creating or hosting meme coins on its chain may be a quick approach to draw attention back to the protocol and boost the bullish mood of the OP token in the near future.
This approach could work, but given the longevity of meme coins, it doesn’t seem to be.
