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    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

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  • Guides
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    Long and Short Positions in Crypto Explained for Beginners

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    What Is Fully Diluted Valuation (FDV) in Crypto?

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    What Does FUD Mean in Crypto? The Fear, Uncertainty, and Doubt Effect

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    The #1 CopyTrading Exchange-Bitget Turns 5, $100 Bonus for Newcomers

    The #1 CopyTrading Exchange-Bitget Turns 5, $100 Bonus for Newcomers

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    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

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    Enhancing Security in Online Gambling with Blockchain Technology

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    Blushush by Sahil Gandhi and Ohh My Brand by Bhavik Sarkhedi Partner to Revolutionize Brand Strategy and Personal Branding

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    How to Play Treeverse: Beginner’s Guide to Gameplay, NFTs, and Tokenomics

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    Guild of Guardians Leads Despite Dip as SuperRare and Panini Skyrocket

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    Official Hyperliquid NFTs Hit All-Time High of $65,000 on OTC Desks

    NFTs Weekly Sales Surge 24% to $142M, Guild of Guardians & Immutable Dominate in Sales

    NFTs Weekly Sales Surge 24% to $142M, Guild of Guardians & Immutable Dominate in Sales

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    NFT sales pump 37% to $144.8m, Immutable dethrones Ethereum

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    Ethereum Token Platform Zora Sues Deloitte Over AI Trademark Dispute

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    OpenSea sunsets ‘Deals,’ other features in OS2 shakeup

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    Binance, Cristiano Ronaldo Introduce Sixth NFT Drop

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    IN-Match3 Joins Forces with Adventure Layer to Scale GameFi, Boost Accessibility & Profitability

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    Civitas Migrates to Immutable zkEVM to Power Low-Cost, Scalable Web3 Gaming & Web3 Network Growth

    Doodles NFT Sticker Launch on Telegram Sells Out in 24 Hours

    Doodles NFT Sticker Launch on Telegram Sells Out in 24 Hours

    Crypto Casinos Made Over $80 Billion in 2024

    Crypto Casinos Made Over $80 Billion in 2024

    A16z-backed Spekter Games founder shares Telegram gaming ethos

    A16z-backed Spekter Games founder shares Telegram gaming ethos

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  • Blockchain
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    Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

    MetaMask Users Can Now Link Binance and OKX Accounts to Their Portfolio Dashboard

    MetaMask Users Can Now Link Binance and OKX Accounts to Their Portfolio Dashboard

    NetMindAI Partners with Neurochain AI to Revolutionize Decentralized AI Services

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OP loses 40% – Here’s how post-Ethereum’s Dencun Optimism is doing

April 5, 2024
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OP loses 40% – Here’s how post-Ethereum’s Dencun Optimism is doing
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  • Optimism saw a massive uptick in terms of liquidity over the past few days
  • Despite the surge in liquidity, the price of OP continued to fall

Optimism [OP], among other Layer 2 networks, benefitted immensely from the recent Dencun upgrade on the Ethereum network due to the reduction of gas fees on these networks.

Getting liquid

Over the past week, liquidity on Optimism has risen by $62 million. Higher liquidity generally leads to improved market efficiency and reduced slippage, making it more attractive for traders and investors to participate in transactions on the network. This can stimulate increased trading activity and volumes, contributing to a healthier ecosystem overall.

Additionally, the rise in liquidity may enhance the overall stability and resilience of Optimism. A deep and liquid market can help absorb large buy or sell orders without causing significant price fluctuations, promoting confidence among users and investors.

Source: Artemis

Tough competition

Even though high liquidity was seen on the Optimism network, the DEX (Decentralized Exchange Volumes) on the network continued to decline. The network wasn’t able to compete with networks such as Arbitrum and Base on this front. Due to the declining DEX volume, Optimism failed to lead in terms of TVL (Total Value Locked) as well.

New entrants in the market such as Base were able to outperform Optimism over the last few days in this regard.

Source: Artemis

State of OP

OP hasn’t been doing too well in terms of price either.

Over the past month, the price of OP has fallen by 39.27%. The price of OP showcased multiple lower lows and lower highs during this period, indicating a bearish trend. At press time, the OP token had fallen past the $3.234-level and was trading at $2.924. Moreover, the On-Balance Volume (OBV) for OP noted a decline.

See also  'Dencun' Upgrade Officially Deployed On Ethereum Mainnet, ETH Price Holds Steady Below $4,000

A falling OBV suggests weakening buying pressure and potentially bearish sentiment among traders Additionally, a decrease in OBV could indicate a reduction in overall market demand and participation, which may further exacerbate downward price pressure.


 Realistic or not, here’s OP market cap in BTC’s terms


Finally, a decline was seen in the Chaikin Money Flow (CMF) for OP as well. This decrease in CMF signifies a reduction in the flow of money into OP compared to the outflows. As CMF is a momentum oscillator that measures the strength of buying and selling pressure in the market, a falling CMF for OP indicates that selling pressure may be dominant, leading to downward price pressure.

Source: Trading View

Next: How Bitcoin NFTs might do thanks to this Binance move

READ ALSO

CryptoGames now supports Tether (USDT) for deposits and announces partnership with Bitinvestor

Toncoin heats up: What does $398M in trading volume indicate?

  • Optimism saw a massive uptick in terms of liquidity over the past few days
  • Despite the surge in liquidity, the price of OP continued to fall

Optimism [OP], among other Layer 2 networks, benefitted immensely from the recent Dencun upgrade on the Ethereum network due to the reduction of gas fees on these networks.

Getting liquid

Over the past week, liquidity on Optimism has risen by $62 million. Higher liquidity generally leads to improved market efficiency and reduced slippage, making it more attractive for traders and investors to participate in transactions on the network. This can stimulate increased trading activity and volumes, contributing to a healthier ecosystem overall.

Additionally, the rise in liquidity may enhance the overall stability and resilience of Optimism. A deep and liquid market can help absorb large buy or sell orders without causing significant price fluctuations, promoting confidence among users and investors.

Source: Artemis

Tough competition

Even though high liquidity was seen on the Optimism network, the DEX (Decentralized Exchange Volumes) on the network continued to decline. The network wasn’t able to compete with networks such as Arbitrum and Base on this front. Due to the declining DEX volume, Optimism failed to lead in terms of TVL (Total Value Locked) as well.

See also  XRP Ledger Daily Payment Volume Soars 350%, Hitting 2 Million Transactions

New entrants in the market such as Base were able to outperform Optimism over the last few days in this regard.

Source: Artemis

State of OP

OP hasn’t been doing too well in terms of price either.

Over the past month, the price of OP has fallen by 39.27%. The price of OP showcased multiple lower lows and lower highs during this period, indicating a bearish trend. At press time, the OP token had fallen past the $3.234-level and was trading at $2.924. Moreover, the On-Balance Volume (OBV) for OP noted a decline.

A falling OBV suggests weakening buying pressure and potentially bearish sentiment among traders Additionally, a decrease in OBV could indicate a reduction in overall market demand and participation, which may further exacerbate downward price pressure.


 Realistic or not, here’s OP market cap in BTC’s terms


Finally, a decline was seen in the Chaikin Money Flow (CMF) for OP as well. This decrease in CMF signifies a reduction in the flow of money into OP compared to the outflows. As CMF is a momentum oscillator that measures the strength of buying and selling pressure in the market, a falling CMF for OP indicates that selling pressure may be dominant, leading to downward price pressure.

Source: Trading View

Next: How Bitcoin NFTs might do thanks to this Binance move
Tags: DencunHeresLosesOptimismpostEthereums

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