- OP’s daily and weekly numbers of active users plateaued in the last few weeks.
- The token’s price action was negative, and a few market indicators were bearish.
Optimism [OP] recently completed its much-awaited Bedrock update, and has brought new changes to the network. During the update, OP halted deposits and withdrawals. However, as the update rollout was completed, OP resumed transactions.
The OP Mainnet migration to Bedrock has begun!
Deposits & withdrawals on the legacy network and transactions to the sequencer have been paused.
To follow along with the migration, bookmark this page:https://t.co/UGE5vDZOuB
— Optimism (✨🔴_🔴✨) (@optimismFND) June 6, 2023
Read Optimism’s [OP] Price Prediction 2023-24
All about Optimism Bedrock
For starters, Bedrock is the name of the first ever official release of the OP Stack. It is a set of free and open-source modular components that work together to power Optimism.
According to the official website, Bedrock enhances its predecessor by utilizing Ethereum as a data availability layer and enhancing batch compression to lower transaction fees.
Now that the update has been successfully released, let’s take a look at a few key changes that it brought. Firstly, Bedrock reduces fees on the network and removes all gas costs associated with EVM execution when submitting data to L1.
Additionally, it adds L1 re-organization functionality to the node software, which drastically cuts down on the time users wait for deposits.
Apart from these, the Bedrock update also improves node performance. Considering all these positives, the effect of the update on Optimism will be quite interesting to witness.
Can bedrock help Optimism on the metrics front?
Token Terminal’s data revealed that Optimism’s daily and weekly active users plateaued over the last few weeks. However, the metric can soon see some volatility as the lowered fees lure new users onto the network.
Source: Token Terminal
As per Dune’s data, the number of transactions on Optimism has gained upward momentum since May, and things can get even better after the Bedrock update.
Source: Dune
OP’s price action was not on par
As the new update was released, OP’s price did not react the way many expected. According to CoinMarketCap, OP’s price registered a decline of more than 2% in the last 24 hours.
While its price declined, OP’s trading volume went up, which looked concerning. At the time of writing, it was trading at $1.39 with a market capitalization of over $894 million.
A possible reason for the decline could be OP’s latest token unlock, which happened a few days ago. Since token unlocks increase the circulating supply, they are often followed by price declines. The next OP unlock is scheduled to happen on 30 June, 2023.
How much are 1,10,100 OPs worth today
This is how metrics reacted
Thanks to the new update, OP’s development activity remained high. Its popularity was also relatively high, as evident from its social volume. OP’s weighted sentiment turned positive, which was optimistic.
However, whale interest in OP declined as its whale transaction count remained low. Another negative metric was OP’s network growth, which has plummeted of late.
Source: Santiment