As a comparatively low-cap digital forex, Optimism (OP) is on a bullish tear at this time, with its worth up 7.25% to $1.04 over the previous 24 hours, in response to information from CoinMarketCap. Whereas the expansion of Optimism will be explainable primarily based on the broader market efficiency, the token has arguably carved a distinct segment for itself within the Internet 3.0 world, and traders’ enthusiasm for it’s now enhanced, per the sentiment round its know-how.
Optimism (OP) is a Layer 2 (L2) blockchain on high of Ethereum. Optimism advantages from the safety of the Ethereum mainnet and helps scale the Ethereum ecosystem through the use of optimistic rollups. The design of Optimism creates room for added functionalities for decentralized purposes constructing on the protocol.
Whereas Optimism stays a excessive flyer and an progressive protocol, its recognition has been subpar as different high L2 rivals, together with Polygon (MATIC), have continued to thrive on the frontlines. Nonetheless, the narrative surrounding Optimism and its underlying know-how are sure to vary this yr as Vitalik Buterin, Ethereum’s hottest developer, has declared plans to enhance work on rollups this yr.
Whereas the rollup know-how is already altering the sport on Ethereum, its relevance and recognition are on monitor to turn out to be extra related over the approaching months. This constitutes a novel basic for OP tokens to see spectacular highs this yr.
Constructing amid crypto winter
Branded as the subsequent frontier in blockchain-based and decentralized infrastructure, Optimism, in addition to different Layer 2 protocols powered by rollup know-how, is dedicated to steady constructing regardless of the continued crypto winter.
As an infrastructure-based protocol, traders throughout the OP ecosystem are, because the identify suggests, optimistic in regards to the new milestones the token will break shifting ahead. In comparison with the all-time excessive (ATH) of $4.57 it recorded about seven months in the past, expectations are mounting relating to whether or not OP has sufficient of a technological and basic foundation to retest new highs this yr.