Bedrock Upgrade: How Optimism Game-Changer Could Impact OP Price

Christian Encila

2 years ago

3 mins read

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Optimism is gearing up for its eventual mainnet upgrade next week. This upgrade will offer lower protocol and security fees for users on the platform. This led to the ecosystem’s governance token, OP, enjoying an increase in price, albeit a modest 3.7% in the past 24 hours.

This price movement only came after last month’s dismal performance where OP dropped by over 30% in the monthly timeframe.

With the promise of lower fees along with Ethereum-like security for the coming upgrade, we might see OP continue its present bullishness.

Optimism: Laying The Bedrock For Future Growth

Touted as the Bedrock mainnet upgrade, it aims to improve efficiency to drive down costs for investors on the platform. According to Optimism’s recent blog post, it should be able to drive protocol and security costs by a whopping 47%. The upgrade will use channels that will be split again to further optimize data compression.

🚀🌐 Layer2 network Optimism is gearing up for the Bedrock Upgrade soon!

💡💎 Discover how this game-changing update boosts scalability, security, and efficiency for Optimism, and what it means for the future of #Ethereum.#Optimism $OP #Layer2 #EIP1559

— KuCoin (@kucoincom) June 2, 2023

This upgrade also corresponds to Ethereum’s Dencun upgrade, which will drive down on-chain costs as a result of danksharding. Danksharding is a process that makes data blobs available for use by Layer 2 protocols like Optimism. This improvement would make Optimism more attractive to developers.

OP total market cap currently at $970 million on the weekend chart: TradingView.com

Along with the Bedrock upgrade is the upcoming OP Stack Mods which are improvements on the OP Stack layer by community members. These modifications can be voted on by the community to be an official part of the OP Stack layer.

The upgrade also opens a path for Optimism to include improvements on its fault proofs with incentives for the community to propose improvements in the system.

At $1.50, How Can This Impact OP Price?

The token’s current trajectory puts it on a perfect path towards higher highs in the coming days. At the moment, OP bulls are targeting $1.70 in the medium to long term with a potential to break through toward the $2 range. If the momentum permits it, investors and traders should continue its current price movement for higher gains.

Source: CoinMarketCap

With Bitcoin gaining ground at the time of writing, the gains made by OP bulls should be boosted in the medium term. However, investors should be careful of any bearish advances that might come in the next couple of days.

The token’s current support at $1.3 has no backing which could pull OP to the sub-$1 range. If this happens, OP bulls should be able to endure a possible drop to $0.5 support. But the current momentum held by the token is enough for investors to confidently target higher highs in the coming days.

-Featured image from Shutterstock

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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