Why Optimism’s OP Stack may have a bigger role to play now

• Optimism’s OP stack’s rising roster might present a constant income stream for the protocol
• Regardless of the hovering income, OP token did not see inexperienced

Over the previous yr, the Layer 2 panorama has seen a notable surge in competitors. On the onset of 2023, Arbitrum held a outstanding place throughout the sector, main many to solid doubt on the prospects of Optimism [OP]’s future success. Because the dominance of Arbitrum grew to become obvious, skepticism round Optimism’s potential arose.

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OP Stack might have a constructive affect

Nonetheless, Optimism’s OP stack might present the protocol with a aggressive edge on this sector. In actual fact, current data revealed a powerful roster of initiatives and enterprises, together with notable names like Coinbase, Binance, Debank, Celo, and Worldcoin, who’re actively developing their very own Layer 2 options utilizing Optimism’s OP Stack.

Coinbase’s Base community has already generated a powerful $1.5 million in income throughout the month. Extrapolating this determine, assuming income stays fixed, leads to an annualized income estimate of roughly $45 million, in accordance with The Defi Investor’s knowledge,

A good portion of this income, particularly 10% of the Base income, would contribute to the Optimism treasury, amounting to a considerable $4.5 million. With the potential for Base’s development trajectory to proceed, this sum might conceivably exceed $20 million through the forthcoming bullish market cycle.

Supply: token terminal

This projection signifies a exceptional $20 million income stream solely attributed to Optimism, courtesy of Base.

Furthermore, it’s necessary to notice that each extra Layer 2 entity that integrates Optimism’s Superchain can even allocate a portion of its earnings to the OP Treasury. This illustrates the broader monetary advantages that stand to be reaped by Optimism as its ecosystem expands and diversifies.

Moreover, in accordance with Token Terminal’s knowledge, the accumulative income generated by Optimism amounted to $4.8 million. Regardless of seeing a decline of 1.8% in every day lively customers, the protocol continued to develop when it comes to income.

Supply: token terminal

How is the OP token doing?

Nonetheless, OP didn’t see the identical degree of development. Over the previous couple of days, the worth of the OP token has fallen materially, with the identical buying and selling at $1.524 at press time. The decline in worth was accompanied by falling community development, which implied that new addresses are beginning to lose curiosity within the token.

Practical or not, right here’s OP’s market cap in BTC’s phrases

The dearth of curiosity from new addresses might be one of many causes behind OP’s current worth correction.

Supply: Santiment