Optimism (OP) Price Analysis and Prediction
What is $OP?
Optimism is an Ethereum network Layer 2 solution. Its primary objective is simplicity. Ethereum's simplicity is facilitated by the minimal amount of additional code. The success of Optimism, which is closely related to Ethereum, is totally dependent upon the Ethereum network's continuing expansion.
On Optimism, transactions are straightforward. Actually, it's comparable to using a credit card. A transaction on Optimism has a window of opportunity to be contested as fraudulent before it is put to an Ethereum block. Seven days make up this time frame.
Compared to the Ethereum network, the costs on the Optimism network are substantially lower. The considerable revenue accrual that Optimism receives from its numerous transactions is used in a variety of ways throughout the Optimism ecosystem, providing incentives for builders to keep the network growing. 19% of the total supply of Optimism tokens are airdrops ($OP). This week saw the first airdrop, which distributed 5% of the overall $OP supply. Anyone who makes a positive net contribution to Optimism's vision will receive more airdrops.
Optimistic leadership is distinctive. While the Citizens House is in charge of some areas of governance, the Token House is in charge of others.
While the Citizens House is concerned with the general welfare of society, the Token House is focused on rewarding projects, modernizing protocols, and supporting the treasury.
The Citizens House is the only place where soulbound tokens ($SBTs), which are non-fungible tokens ($NFTs) carrying personal information such as individual accomplishments and employment credentials, are implemented. They are personal, yet they cannot be transferred, unlike typical $NFTs. An $NFT that has been soulbound thanks to this new technology is permanent and non-transferable.
$OP Market Position
The market position of optimism is challenging to understand. It is challenging to forecast where the $OP coin will go because of a recent airdrop and a market that is still developing. But traditionally, airdrops have been dropped in exchange for money. The $OP's situation has not changed this.
Those who ditched their recently airdropped $OP packs have drawn harsh criticism from the community. Many people favor excluding merchants from upcoming airdrops.
Investors will need to sincerely trust in the project's viability for the coin to plummet from $4.50 to just over $1 for it to rally. Although Optimism offers many excellent qualities, it faces stiff competition in the Layer 2 market.
Why Is $OP on the Rise?
Since investors have started to invest again in cryptocurrencies, optimism ($OP/USD) has had a significant bullish resurgence. The price of the token rose as high as $0.73, marking its highest point since June 12th of this year. It has increased by more than 81 percent since June, when it hit a low, increasing its market valuation to over $152 million.
One of the top layer-2 blockchain initiatives worldwide is optimism. It is a platform that promises to help programmers optimize Ethereum applications across sectors like gaming, the metaverse, and decentralized finance ($DeFi). Layer 2 networks Loopring and Polygon are comparable to Optimism. They work by transferring all computing off of the Ethereum platform. They run it more quickly by putting all the transaction data on the blockchain. Applications that have been designed for optimism are consequently far quicker than those that have been tuned for Ethereum. Additionally, they cost a lot less than those on Ethereum. Indeed, optimism has helped Ethereum users avoid losing over a billion dollars over the past two years.
Numerous builders have adopted optimism. $DeFi Llama claims that there are more than 20 applications in the $DeFi ecosystem on the platform, with a total value locked ($TVL) of more than $362 million. Synthetix, Velodrome, Uniswap, Perpetual Protocol, Aave, and Curve are some of the most well-known names in Optimism.
Bridges have embraced optimism, including Hop Exchange, $Bungee, Synapse Protocol, and $Celer, among others. The $NFT applications Quixotic, Bored Town, and Circular Art all make use of Optimism.
The cost of optimism has increased as a result of cryptocurrencies' continuous comeback. In fact, more than $1 trillion has been invested in cryptocurrencies overall. Additionally, the continued recovery of $DeFi tokens like $Aave, $Uniswap, and $Curve has caused an uptick.
$OP Price Prediction
The $OP price has just had a substantial comeback, as seen on the four-hour chart. From a low of $0.3950 to a high of $0.7423, it has increased. Additionally, it has succeeded in overcoming the crucial resistance level of $0.6585, which was the high point on June 25.
Optimism has increased above the 25-day and 50-day moving averages, and the $MACD has moved above the neutral mark. The coin is therefore likely to keep climbing as bulls strive for the important $1 barrier level. The positive view will be invalidated if there is a breach below the $0.6585 support level.
$OP Price Prediction in August 2022
Optimism is predicted to start at $0.86438311570179 and end at $0.87564547234257 in August 2022. The anticipated OP price in August ranges from $0.73472564834652 to $1.080 at its lowest.
$OP Price Prediction in September 2022
It is anticipated that September 2022 will start at $0.87684852624227 and end at $0.93268531881021. The predicted range of $OP prices in September ranges from $0.74532124730593 to $1.096.
The Bull Case for Optimism by Vitalik Buterin
The governance system of Optimism has received acclaim from Vitalik Buterin, co-founder of Ethereum. Having the Citizens House partially structured Optimism might be considered a move in the right direction because Buterin is a proponent of decentralization. $SBTs have the potential to be very useful, even though the majority of projects employ governance coins to make choices.
The Bear Case for Optimism by Tom D. Crypto
A well-known cryptocurrency analyst named Tom D Crypto offers a negative argument for optimism ($OP). He displays several other airdrop-related experiments in his most recent video. Examples include LooksRare, dYdX, and ENS. The main point is that airdrops frequently fail. Optimism ($OP) could face difficulties, at least in the near future. It could be wise to wait for the selling to slow and the token to bottom out before investing in the project.