How Optimism reclaimed dominance in the L2 sector

Journalist

Posted: December 10, 2023

• Optimism now has the highest number of L2 active addresses. 
• OP’s TVL remained the second-largest among L2s.

 Optimism [OP] faced tough competition from another L2 network in various key metrics recently. Nevertheless, it has successfully rebounded and reclaimed its position in the past few weeks.

Optimism sees record active addresses

Data from IntoTheBlock showed that Optimism has regained its position as the leading L2 network in terms of active addresses. Initially challenged by Base, which experienced a surge in active users upon its launch, Optimism has bounced back significantly. 

Analysis of the active addresses metric for Optimism on DefiLlama showed two notable spikes in November. The first, recorded on the 16th of November, was over 170,000 active addresses, while the second, on 17th November, was over 186,000.

These figures represent the highest daily numbers in Optimism’s history. As of this writing, the active addresses for Optimism were over 72,000.

In contrast, Base’s active address chart showed a recent decline. After reaching a significant number of active addresses, it has experienced a cooldown. Currently, Base has over 57,000 active addresses.

How Optimism’s TVL compare

An analysis of the Total Value Locked (TVL) for Optimism and Base showed the unchallenged dominance of the former. According to L2 Beats data, both platforms have witnessed growth in their TVLs within the last 24 hours.

Optimism’s TVL increased by over 11%, reaching around $4.5 billion as of this writing. This translated to a significant market share of over 28%, making Optimism the second-largest player in the L2 TVL market.

In contrast, Base experienced a slight growth of around 1%, resulting in a TVL of around $628 million. While Base’s market share was around 4%, positioning it as the third-largest player, Optimism maintained a substantial lead.

Notably, the analysis of TVL revealed the difference in trends beyond the similarities in active address growth.

OP trends upward again

Examining the price trend of OP showed an interesting pattern in recent days. Following a prolonged period of consecutive value declines, it has reversed course and showed an upward trend.

 How much are 1,10,100 OPs worth today

As of this, it was trading at around $2.1, reflecting an increase of over 4%. Notably, a significant spike of over 26% occurred on the 7th of December, propelling it beyond the 60 mark on the Relative Strength Index (RSI).

As of this writing, the RSI continued to register above 60, indicating that OP was still in a strong bullish trend.

Source: TradingView