Image default

Optimism’s OP Token Hits All-Time High as Layer 2 Adoption Interests Grow

Facebook iconLinkedin iconTwitter iconLayer 2 platform Optimism’s OP token saw a price jump in January. (Denny Luan/Unsplash)

The price of Optimism’s OP token jumped in January. (Denny Luan/Unsplash)

Consensus 2023 LogoJoin the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.Secure Your SeatFacebook iconLinkedin iconTwitter iconConsensus 2023 LogoJoin the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.Secure Your Seat

Layer 2 network Optimism’s OP token surged to its all-time high of over $2.50 on Wednesday amid rising adoption of layer 2 networks.

OP, which ​​launched via a community airdrop on May 31, 2022, was more recently trading at about $2.22, down 10% over the past 24 hours amid declining transaction volumes on the Optimism platform the past few days, but still up roughly 140% gain since the start of the year when it was hovering below $1, according to CoinDesk data. OP was recently up about 30% this week.

CoinDesk - Unknown

The OP token price chart shows a price surge in January. (CoinDesk)

“People want layer 2 tokens and they see layer 2 adoptions happening,” said Nick Hotz, vice president of research at the digital-asset management firm Arca, referring to the tokens associated with companion blockchain systems. “Optimism is the only way to get good exposure to that theme currently.”

The OP token’s jump has outpaced the top two digital assets by market capitalization, bitcoin and ether, which have recently risen 39% and 33%, respectively, in 2023.

The funding rates for the token also remain positive, a signal that market sentiment is bullish among traders, according to data from Coinglass.

Despite the price surge, Optimism’s transaction activities recently dropped massively.

According to Etherscan data, daily transactions on Optimism reached an all-time high of 800,000 on Jan. 12, although the volume has subsequently sunk to some 200,000 daily.

CoinDesk - Unknown

Daily Transaction on Optimism Chart shows a drop in transactions since Jan. 17. (Etherscan)

Riyad Carey, research analyst at crypto data firm Kaiko, attributed the sharp drop in transactions to the recent completion of Optimism Quests.

The Quests, which ran from September through Jan. 17, encouraged users to interact with a variety of protocols on the network, including minting non-fungible tokens (NFT) after completing a task.

“It isn’t necessarily discouraging,” he said. “The Quests were successful in onboarding many new users, but it does show that many transactions were directly related to this initiative.”

Layer 2 adoption

Optimism is a layer 2 scaling system, powered by Optimistic rollups technology, running on the top of the Ethereum network.

Optimism and other layer 2 scaling systems such as Arbitrum are supposed to make transactions on the Ethereum blockchain cheaper and faster. After Ethereum completes its EIP-4844 upgrade, also called proto-danksharding, later this year, it will make transaction fees on layer 2s even “an order of magnitude cheaper,” Marc Arjoon, Ethereum research associate at CoinShares, wrote in a note.

“2023 is shaping up to be the year of layer 2s,” Arjoon wrote. “For years Ethereum has been struggling to scale effectively while preserving decentralization and security and layer 2s have seemingly solved this trilemma.”

He added: “With a first-mover advantage and the most social capital, these advancements in scaling should help the Ethereum ecosystem prepare for the next wave of adoption and regain some of its lost market share.”


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Trending1CDCROP: The HASH Podcast GraphicCoinDesk Podcast NetworkHeadlines: Top Stories of the Week 01-23-23Jan 28, 20232(Yaroslav Kushta/Getty Images, modified by CoinDesk)The Breakdown, With NLWWhat’s Next for NFTs?Jan 28, 20233Markets Daily Podcast CoverMarkets Daily Crypto RoundupWeekend Story: After FTX – How Congress Is Gearing Up to Regulate CryptoJan 28, 20234CDCROP: FTX founder Sam Bankman-Fried returns to court In the Bahamas (Joe Raedle/Getty Images)PolicySam Bankman-Fried Seeks Right to Transfer FTX's CryptoJan 28, 2023


Related posts

CoinDesk Indices, Crypto Asset Manager CoinFund Launch an Ethereum Staking Benchmark Rate

Blake Goodwin

First Mover Asia: Will CFTC’s Action Against Binance Benefit Crypto’s Asia Narrative?

Blake Goodwin

First Mover Americas: Bitcoin Up Slightly After Hitting Weekend Lows on Recession Fears

Blake Goodwin

Leave a Comment