The post Optimism (OP) Faces Decline in User Activity and Revenue Despite DeFi Rally appeared on BitcoinEthereumNews.com.

Optimism, a leading layer-2 network for Ethereum, is experiencing a substantial decline in transaction volume. The decrease in daily active addresses is significantly impacting network revenues. Despite these downturns, the DeFi sector’s total value locked (TVL) is on the rise, reflecting external market rallies. Discover the fluctuating trends within the Optimism network and their broader implications for the DeFi ecosystem. What Are the User Trends? Recent data from Artemis reveals that user activity on the Optimism network has been dwindling. Over the past month, the number of unique addresses completing at least one transaction has plummeted by 45%. This decline is directly mirrored in the daily transaction count, which has decreased by 31% during the same period. These figures indicate a clear reduction in user engagement and overall network activity. Impact on Network Revenues The downturn in user and transaction activity has significant financial ramifications. Network fees, which amounted to $208,000 last month, have dropped precipitously to $61,600 as of July 17. This 65% drop illustrates the severe contraction in network revenue, exacerbated by a 6% decline in the value of Optimism’s native token, OP. The shrinking user base and transaction volume are chiefly responsible for these financial setbacks. Key Takeaways The following insights shed light on the current state of the Optimism network: The number of daily active addresses has fallen by 45% over the past 30 days. The network’s transaction volume has decreased by 31%. Network fees have seen a sharp reduction from $208,000 to $61,600 within a single month. Overall revenue from the network has plummeted by 65%. Future of OP Price Amid these operational challenges, the price of OP is navigating through a new trading channel. Recently, OP’s price has exceeded the $1.88 resistance level, touching $1.93, buoyed by Bitcoin’s bullish movement past $67,000. However, should…

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Filed under: News - @ July 20, 2024 1:08 am