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Starting today, IntoTheBlock Market Intelligence users have full access to all our analytics tools for Optimism. Join us today to discover the full potential of this vibrant ecosystem. Let’s dive into Optimism together!
A look into Optimism Analytics
We are thrilled to announce that our complete set of analytics tools for Optimism is now available. With six main categories to explore, including financials, transactions, and ownership, there are plenty of insights to uncover. We’ve taken some exciting insights from IntoTheBlock Market Intelligence. If you want to follow along, you can grab a free 7-day trial on our website.
Our In/Out of The Money indicator is a fan favorite, providing valuable information on resistance points and profit percentages. Optimism paints a pretty balanced picture compared to other networks, with 37% of OP holders currently in profit.
When we look at Optimism in more detail, we can see that there are a lot of historic buys around the $1 range. Over 77k addresses acquired $OP at an average price of $0.86 and another 76k addresses acquired $OP with an average price of $1.12. The biggest group of buyers who are currently at a loss bought around the $2.40 level, with over 116k addresses purchasing at an average price of $2.41.
So what could that tell us about Optimism? The idea is that these zones indicate stronger trading activity and could signal buy or sell zones. If prices moves closer to 2.41, in the case of $OP, a lot of people might sell to cover losses or buy in because of FOMO. Which of the two is more likely depends on other factors, which we’ll take a look at now.
One important thing to keep in mind, especially with a layer 1 network, is how a network is used. Is it gaining users? And what about transactions? These indicators can help you judge if an asset is gaining traction and adoption.
If we look at Optimism, we can see that the total number of addresses has been steadily increasing and started increasing more rapidly in late 2022 and early 2023, which coincides with the airdrop period and the hype leading up to it. The number of new addresses spikes occasionally and is pretty stable in general. Currently, there are over 580.000 addresses with a balance.
The number of $OP transactions remains pretty stable as well. We saw a noticeable increase in the first quarter of the year, after which usage decreased somewhat.
Nonetheless, the number of $OP transactions remains stable, with over 12.000 daily transactions on May 2nd, indicating a strong core of active users.
Ownership: What’s the economic distribution of $OP?
Understanding the impact of holders on economic activity is crucial. If assets are predominantly owned by a small group of individuals or if there is a lack of retail users, it may suggest that the network economics are unhealthy. To determine this, we utilize the Optimism Ownership Analytics, which includes the Optimism Holdings Distribution Matrix.
According to our analysis, larger holders hold the majority of $OP, while retail users (who own less than 0.1% of the supply) only account for 5.7% of the total supply. However, it’s worth noting that these figures encompass all wallets, including those belonging to the team and network-related wallets utilized for airdrops or grants.
Social Analytics for Optimism
Finally, IntoTheBlock’s Optimism Social Analytics tool helps users visualize activity around the $OP token on social media. The tool shows the volume and level of positive sentiment related to Optimism. Notably, significant price moves coincide with increased volume on social media, and in some cases, social volume picks up before the major price move, indicating that the tool is a useful indicator to keep in mind.
Explore more insights
We’re excited about adding Optimism to our stack of crypto Market Intelligence. If you’re interested in performing some in-depth research on the Optimism Ecosystem and $OP token, we invite you to take advantage of our free 7-day trial and experience the power of IntoTheBlock for yourself. You can sign up for a trial here: https://app.intotheblock.com/register/
Want to find out more about Optimism? You can sign up for our webinar on the 17th of May, where we’ll discuss the Optimism ecosystem in detail.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.