There Is A Bump In Optimism’s Transactional Activity Lately; Here’s Why

Traders and investors in the crypto industry are anticipating a positive upturn on the Optimism Network as the ecosystem is poised for a possible return witnessed in previous bull market trends. The network has seen a recent bump in transactional activity, which experts believe signals upcoming investor interest.

A Likely Investor Interest

Blockchain’s transactional activity indicates a possible investor interest in a particular ecosystem as it suggests that buyers of a token and users of decentralized applications (dApps) on a network are increasing.

Accordingly, the transactional activity for the Optimism Network is reported to have bumped steadily in recent weeks. This recent bump in activities has surpassed that of its rival network, Arbitrum, whose network activities dropped by almost 50% after a peak in November.

It is worth noting that Optimism is an Ethereum Layer-2 scaling network that enables traders to use the blockchain network for a few cents as fees and a few seconds of transaction time. Furthermore, Optimism Network is among the blockchain protocols launched in 2021, with each pledging to be more affordable and faster than previous ones.

However, on-chain data revealed that Optimism is not a flash in the pan like others; the network is not all about hype. In the last seven days, the platform logged more than 800,000 transactions in a day, and the figure signifies double the network’s activity last seen in November and ten times that of June 2022.

Additionally, its total value locked (TVL) is just below $600 million, with Synthetix accounting for 19% of the total TVL. Synthetix is a trading protocol that enables traders to bet on financial derivatives without needing third-party trading platforms.

With this, Synthetix was able to carve a niche market for itself as it seeks to invest in other global assets like equities and stocks for low fees. According to DeFiLlama, numerous yield products on Optimism offer yearly rewards of up to 100% on some liquid pools, attracting more capital from investors.

What Is Optimism?

Optimism is an Ethereum Layer-2 scaling platform designed to help the Ethereum ecosystem run off-chain computation while publishing the transaction data on-chain. The protocol is crucial to the Ethereum ecosystem because it offers scalability and helps reduce the network’s transaction costs and time.

As one of the most secured and decentralized blockchains, Ethereum is built around three trilemmas; decentralization, scalability, and security. However, due to the limitation of the blockchain trilemma, the network can only deploy two out of the three properties.

Hence, to keep the network functioning optimally, the development team sacrificed scalability to ensure more security and decentralization. This is where Optimism comes in.

Optimism offers the Ethereum ecosystem scalable solutions, which helps to increase the network’s transaction speed without compromising decentralization and security. Furthermore, Optimism interacts with the Ethereum ecosystem to communicate with its Layer-1 while ensuring that it offers the same security and decentralization features.

Meanwhile, Optimism’s Layer-2 solution focuses on scaling.

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