Optimism (OP), an Ethereum (ETH) based layer 2 scaling solution, has been competing with the likes of Polygon (MATIC) and Arbitrum network in onboarding Web3 projects on the second largest network. With over $1.01 billion in total value locked (TVL), the Optimism network has been on a rising trajectory since the calendar flipped. According to market data provided by TradingView, the OP token has gained approximately 200 per cent YTD to trade around $2.78 on Wednesday.
As the token consolidates in a wedge formation on the daily time frame, the RSI indicator has been showing signs of possible correction in the coming weeks. Moreover, the OP token hit ATH around $3.22 on February 24 and has since declined approximately 13.77 percent.
Nonetheless, the Optimism network has seen its global user base rise exponentially, with on-chain data showing 515,339 OP holders.
Optimism (OP) Market Outlook
As the need to morph into a faster and more efficient Ethereum scaling solution rises, Optimism developers are preparing for the Optimism Goerli hard fork scheduled for March. With no downtime anticipated from the hard fork, Optimism expects the upgrade will attract more DeFi developers to its ecosystem. Moreover, the layer 2 scaling solution facilitates fast transactions without mempool to ensure requests are either accepted or rejected immediately.
“These fixes improve the development experience for Bedrock by fixing inconsistencies in our API for receipts in certain system transactions. Though the bug is developer-facing and would not have affected user funds, it does require a fork to fix,” Optimism noted.
The network has indicated that the date for the hard fork will be announced next week, including the results for Sherlock.