Optimism: DEX volumes surge, is this the reason why?
Journalist
Posted:
- Optimism noticed a surge in DEX quantity.
- The worth of OP remained unaffected, nevertheless, community progress declined.
Regardless of the Layer 2 sector getting aggressive and crowded during the last 12 months, Optimism [OP] has continued to point out its resilience.
A sudden spike
Within the final week, the Optimism DEX noticed a large 1,800% improve in weekly buying and selling quantity, reaching over $12 billion, breaking earlier information, and even surpassing Ethereum [ETH].
Nonetheless, it’s necessary to notice that this surge was primarily influenced by a vulnerability assault on KyberSwap, involving a transaction quantity of $11 billion. This incident contributed to the general spike in buying and selling exercise on the Optimism DEX.
Regardless of the extraordinary progress, the circumstances behind this surge must be thought-about in understanding the complete image of the elevated buying and selling quantity.
After that sudden spike, the DEX volumes on Optimism fell. Nonetheless, the TVL on Optimism continued to develop at a gradual price. This prompt that regardless of the drop in DEX volumes, the expansion of the community within the DeFi house continued to rise.
Supply: Artemis
How has the value been affected?
The worth of OP remained comparatively secure regardless of these occasions. At press time OP was buying and selling at $1.80660. Within the final 24 hours, the token grew by 0.65%, however no important modifications have been seen. The community progress round OP, nevertheless, fell.
The decline on this metric prompt that new addresses have been beginning to lose curiosity in OP. Furthermore, the speed round OP additionally fell. This confirmed that the variety of occasions OP was traded had additionally declined.
This might imply that the addresses have been holding onto their OP and the present holders have been accumulating extra tokens. Nonetheless, solely curiosity from outdated token holders is probably not sufficient to pump up OP’s value additional.
Supply: Santiment
Nonetheless, new governance proposals on Optimism might appeal to customers to the protocol sooner or later.
On this proposal, xToken Terminal and Gamma Methods teamed up for an OP token liquidity enhance on Optimism’s Uniswap [UNI] V3. They search 900,000 tokens for a 24-week plan, cut up amongst suppliers
The proposal advocates liquidity mining for a sturdy basis, with tokens evenly distributed.
Is your portfolio inexperienced? Take a look at the OP Profit Calculator
On this context, liquidity mining means rewarding individuals who present liquidity to the OP token on Uniswap V3. Individuals who add their OP tokens to the buying and selling pool get additional tokens as a reward.
This encourages extra individuals to take part and retains the buying and selling pool wholesome.
