OP has risen to an all-time high
Transaction volumes on Optimism, a layer 2 scaling solution for Ethereum, have plummeted since the end of last week’s “learn to earn” incentive program.
However, even as users are moving away from the blockchain, OP Optimism’s native token hit an all-time high on Sunday.
OP priceA source: Defiant Terminal
Daily transactions on Optimism have fallen nearly 75% since hitting an all-time high on January 12th. But its governance token is up 168% since the start of the year. According to CoinMarketCap, only three other tokens — Aptos, Threshold, and STEPN — have performed better in 2023.
End of quests
The drop in daily transactions coincides with the end of the Optimism’s Quests program. The first series of quests began in September and ended on January 17th.
“Simply by reading about the various applications and completing a short test and task, users will be able to create a commemorative NFT that represents the completion of a related quest,” the guide on the Optimism website says.
The program worked as intended.
Even though the number of transactions of Optimism’s main competitor, Arbitrum, has declined in the last two months of 2022, the number of transactions on Optimism has increased dramatically.
Daily transactions on Optimism hit an all-time high of 800,000 on January 12th. The seven-day moving average peaked five days later at over 690,000.
By all available metrics, however, platform usage has plummeted since then.
Optimism registered over 600,000 transactions on January 17, the last day of the quests. On January 18, that figure dropped to 239,000. On January 19, it was just over 165,000, a three-month low.
Daily “app activities,” a metric that measures app usage across the Optimism ecosystem, is down 76% from its all-time high earlier this month. Transaction fees have dropped 71% since hitting a two-month high on Jan. 14.
A couple of Optimism representatives have yet to respond to The Defiant’s request for comment.
Self-proclaimed DeFi Analyst DeFyist noted that Quest users were probably hoping their interaction would qualify them for a second Optimism airdrop, which has yet to be announced.
The data collected by the pseudonymous cryptanalyst J. Hackworth confirms this. About two-thirds of Optimism users participated in quests in January.
“In my opinion, L2 activity is related to the airdrop,” they wrote.
But the decline in Optimism’s user base had little effect on the native blockchain token, OP.
OP hits ATH
Amid a broader crypto rally fueled by positive US inflation data, OP has surged in recent weeks, according to data from The Defiant Terminal.
ETH Price + OP PriceA source: Defiant Terminal
Investors do not seem to be put off by its relatively low circulating supply or the amount of OP in circulation in relation to the total supply of the token.
There were approximately 200 million OP tokens in circulation on Wednesday, with a market capitalization of over $500 million. Optimism intends to eventually unlock over $4 billion, giving the project a fully diluted valuation (FDV) of over $10 billion at current prices.