According to CryptoPotato, the overall market capitalization of cryptocurrencies experienced a decline at the beginning of this week, dropping from $1.6 trillion to $1.5 trillion, indicating a day-on-day decrease of over 5%. This market downturn affected the native token of the Ethereum-based layer-2 Optimistic Rollup network, OP, which incurred weekly losses of over 20%. Despite this, a substantial number of token holders maintained a profitable position. A recent analysis by Intotheblock revealed that over 80% of OP token holders fall into this category.
This trend is viewed as positive for the crypto asset, indicating the resilience of long-term investors who have navigated through the market’s volatility. It also underscores investor confidence for sustained growth in the future. The layer 2 scaling solution has witnessed massive growth over the past year, closely following its rival Arbitrum. A major turning point for Optimism was its Bedrock hard fork implemented on June 6 last year. The primary goals of the Bedrock upgrade were to decrease deposit times and fees while bolstering the network’s security. Following the hard fork, Optimism experienced a notable surge in transactions while volume followed suit.
Diving deeper into ITB’s data suggests that Optimism has recorded a significant number of large transactions in recent weeks. The figure spiked to 421 on January 12th, a level not seen in almost a year. Additionally, the total number of addresses holding some amount of balance has exceeded a million for the first time. Over the past three months, the consistent creation of new addresses has remained above 1.34k. This heightened user activity presents a positive and bullish outlook. On the network side, a similar trend is observed, with Optimism’s increased development activity reflected in its entrance into the top 10 crypto assets with noteworthy GitHub commits in December.
