Optimism Suffers 21% Loss – Will On-Chain Activity Regain Investor Trust?

Christian Encila

11 months ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Losses mount for Optimism as the market suddenly flips from bullish to bearish, wiping significant gains made after it rebounded last week. According to CoinMarketCap, the token is down over 21% since last month, putting significant pressure on investors as the market continues with its choppy trading days.

Despite the market’s hostility in the past 24 hours, on-chain news still reinforces investor confidence as the platform’s Superchain continues to grow. But questions remain as to how this can affect the token’s price in the coming days and weeks.

Conduit, Mode, And Zora Join Optimism Collective Security Council

Last Saturday, the official Optimism X account revealed that Conduit, along with Zora and the Mode Network, gave their L1 contract upgrade keys to the Optimism Collective Security Council. According to Optimism, this is “a significant step for these chains to progress towards Stage 1 Decentralization.”

🤩Heading to Stage 1!

Today, @modenetwork @zora and @metal_l2 officially transferred their keys to the Optimism Collective Security Council.

This is a significant step for these chains to progress towards Stage 1 Decentralization.

Read more👇 https://t.co/c1yRLQrQyN

— Optimism (@Optimism) August 8, 2024

Conduit released a post detailing the reasoning why the move is significant for the participating platforms’ decentralization.

“Rollups must be decentralized in order to be secure and censorship-resistant. But that isn’t feasible from day one. Optimism has a 3-stage process for Superchain rollup teams to gradually transition their chains to full decentralization…,” stated Conduit on their thread.

Rollups must be decentralized in order to be secure and censorship-resistant. But that isn’t feasible from day one. Optimism has a 3-stage process for Superchain rollup teams to gradually transition their chains to full decentralization, inspired by @VitalikButerin:…

— Conduit (@conduitxyz) August 8, 2024

This is in line with what the Optimism Collective Security Council is about. In its proposal stages, the Security Council will effectively hinder any attempt at one-party control over the network and the systems beneath it. The move will help keep the network secure while keeping scalability on the table for developers.

The scalability half is Optimism’s greatest strength. Optimism said that the first half of the year saw open-source contributors push over half of the platform’s current features in the OP stack. This commitment to decentralization along with network features helps it to be flexible and scalable making Optimism a viable investment for the long term.

OP market cap currently at $6.8 billion. Chart: TradingView.com

Optimism Still Looking At Minor Hurdles In The Long Run

The market rebound created gains for investors while this week’s opening moves wiped the majority of it to the ground. This created an atmosphere of fear, uncertainty, and doubt for the token’s future movement. As of writing, the token remains on the $1.2-$1.6 price range which it entered last week because of the market retreat.

The slight uptick in price by the tailend of last week has exhausted the bears, putting OP into consolidation mode for the coming weeks. If the bulls are successful in defending this position, the token will see itself trading on a narrower range before shooting up toward the $2 mark.

But this can only happen if the market recovers from its 5% downward move today. If they can weather the coming FUD within the next two weeks, OP has a chance to regain lost ground pushing its price upward.

Featured image from KuCoin, chart from TradingView

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.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.