Optimism price prediction: Popular Layer-2 blockchain rallies
Can Optimism (OP) sustain the recent rallies?
- What is Optimism (OP)?
- OP token and the Optimism Collective
- Key Optimism (OP) figures
- Optimism price predictions
What is Optimism (OP)?
Optimism is an Ethereum Layer-2 (L2) solution centred on low cost and ease of use. It was first revealed in June 2019, and Optimism’s open mainnet was launched in December 2021. Since Optimism was designed to closely mirror Ethereum, developers can deploy existing contracts on the blockchain in a streamlined manner.
As a blockchain built on top of Ethereum Layer 1 (L1), Optimism uses Ethereum’s proof-of-work (PoW) consensus method to validate transactions – that is, until Ethereum transitions to a proof-of-sake [PoS] method, which is scheduled for the second half of 2022.
What is Optimism (OP) and the latest Optimism price prediction? Keep reading to find out more.
OP token and the Optimism Collective
OP was initially distributed among Optimism users via an airdrop on 31 May 2022. The airdrop encountered a hiccup, however, as the servers buckled under the traffic, leaving some eligible token holders with empty hands.
In a post mortem of the airdrop, Optimism stated: “While we’re thrilled that OP Airdrop #1 is live, we recognize the frustrations our users experienced and have detailed the day’s events – and more importantly, what we’ve learned and how we’ll apply those lessons to future airdrops.”
At the time of writing, the majority of eligible token holders had received their tokens, and progress continues.
The OP token is used to fund third-party development proposals and integrations on the Optimism L2 chain, via the Optimism Collective decentralised autonomous organisation (DAO). While any OP holder can partake in governance, Optimism Collective recommends delegating your tokens to a predetermined set of delegates, who will use your voting power accordingly. You retain 100% ownership over your tokens when delegating, and can switch delegates at will.
In the DAO’s own words: “The Optimism Collective allocates this money to projects and communities building for the common good.”
Recent integrations have included the Lyra decentralised exchange, the Synthetix synthetic assets protocol, the L1-to-L2 bridging platform Hop Exchange, and Uniswap. A range of NFT, decentralised finance, on-ramping and portfolio-tracking dApps have also been integrated into Optimism.
Key Optimism (OP) figures
As of 4 August 2022, OP was valued at $1.89. The market cap currently stands at around $446m, with a recent 24-hour trading volume of £817m, or around 180% of the market cap.
Token distribution is as follows:
- User airdrops: 19% (first 5% released in Airdrop No. 1)
- Retroactive public goods funding: 20%
- Ecosystem fund: 25%
- Investors: 17%
- Core contributors: 19%
The initial OP token supply at genesis was just under 4.3 billion, set to inflate at a rate of 2% yearly.
Now on to Optimism price predictions.
Optimism price predictions
DigitalCoinPrice’s Optimism price prediction for 2022 is currently set at $2.48 before rising to $3.69 in 2025. The forecaster’s Optimism price prediction for 2030 is $8.65.
CoinArbitrageBot’s 2022 OP price prediction is $1.61. Two of the forecaster’s 10 technical indicators (on a 24-hour analysis) point to a ‘sell’ strategy, while 13 suggest a ‘buy’ strategy and seven remain neutral. The Optimism price prediction for 2025 is $9.18.
According to CryptoPredictions’ Optimism coin price prediction, the token could hit $2.39 in December 2022 before heading up to $5.72 in December 2025.
Be aware that Optimism is a very new cryptocurrency. While the platform behind it has proved popular, OP, just like any other digital asset, is still a risky asset and your capital is at risk. Always do your own research and never invest more money than you can afford to lose.
Currency.com will keep you updated as the project progresses.
The initial OP token supply as genesis was 4,294,967,296, set to inflate at a rate of 2% per year. There are currently 234,748,364 coins in circulation.
That all comes down to the long-term potential of this newly launched coin. The platform has a solid set of third-party developers engaging with the project, though that is no guarantee of success.
As an investor, you should do your own research into the platform’s fundamentals and technical documentation before deciding whether or not to invest.
It is perhaps too early to make a solid Optimism crypto price prediction. Although the digital forecasters do expect modest returns for today’s investors, OP could just as easily go down in value should the platform not gain sufficient traction.
Always invest with a cool head and never invest more than you can afford to lose.
Currency.com is not in the business of giving financial advice. The information presented in this article is intended as a neutral resource. Make sure to assess the fundamentals of the product, as well as getting independent financial advice, before putting your money down on an investment.