Optimism (OP) Sees Decline in Activity, but Its DeFi Sector Thrives

Points

• Optimism （OP） has witnessed a decline in user activity over the past few weeks.
• Despite this, the DeFi sector on Optimism has seen a significant increase in total value locked （TVL）.
• The broader market rally has positively impacted Optimism’s DeFi ecosystem.

Leading Layer 2 network Optimism （OP） has experienced a decline in user activity in recent weeks. Data from Artemis reveals a steady drop in the number of unique addresses involved in daily transactions, decreasing by 45% over the past 30 days. This decline in user activity has also resulted in a 31% decrease in daily transactions.

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Impact on Network Fees and Revenue

The reduced user activity on Optimism and the 6% decline in OP’s value in the last month have led to a drop in network fees and revenue. On July 17, Optimism’s network fees totaled $61,600, marking a 71% drop from the $208,000 in total network fees recorded a month ago. Revenue derived from fees also dropped by 65% during the same period.

DeFi Sector Performance

Despite the decline in user activity, the DeFi sector on Optimism has thrived. The recent broader market rally has led to a surge in the total value of assets locked （TVL） across its DeFi vertical. At $766.55 million at press time, the network’s DeFi TVL has increased by 15% in the last week, reaching its highest level in over a month.

Price Analysis

OP’s price has been trading within a range after previously trading within an ascending channel from July 5 to 15. This indicates a period of consolidation where buying and selling pressures are balanced, with the price oscillating between support and resistance levels. OP currently faces resistance at $1.88 and is forming support at $1.84. If it breaks above resistance, the token could trade above $1.91. However, if it falls below support, its value may plunge toward $1.60.

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Conclusion

While Optimism has seen a decline in user activity, its DeFi sector has shown resilience and growth. The broader market rally has positively impacted the total value locked in Optimism’s DeFi ecosystem, highlighting the network’s potential despite short-term challenges.

解説

• User Activity Decline: The drop in user activity on Optimism reflects broader market trends and the challenges faced by Layer 2 networks in maintaining engagement.
• DeFi Growth: The increase in total value locked （TVL） in Optimism’s DeFi sector demonstrates the resilience and potential of decentralized finance on the network.
• Price Consolidation: The current price consolidation of OP indicates a balance between buying and selling pressures, with key support and resistance levels providing insights into potential future movements.