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Analyzing the ecosystem tokens market capitalization, number of holders, whale concentration & transaction volumes
The blockchain space is a rapidly evolving innovation landscape, in which various different cryptocurrency ecosystems co-exist. The majority of these ecosystems are in a developmental phase, but certain indications of maturity and adoption are beginning to emerge in a few of them. This article will dive into the progression and adoption of the Optimism Ecosystem. This analysis is performed by assessing the market capitalization expansion and token distribution within the ecosystem, scrutinizing the number of holders for each token, evaluating the concentration of large holders for each token, and analyzing the transaction volume across the ecosystem’s tokens. Furthermore, this information assists users in pinpointing the communities that are most active and committed to nurturing innovation and advancement within their specific fields.
Market capitalization stands for the total market value of all tokens currently in circulation. This figure provides investors with a sense of the project’s scale and magnitude. Additionally, it aids in gauging the project’s adoption and offers insights into its level of development.
Via IntoTheBlock’s Optimism Perspective Dashboard
In the creation of an ecosystem dashboard, the tokens chosen to be included within a specific ecosystem are carefully curated. For a token to be considered part of the ecosystem, their primary activities must occur within the blockchain ecosystem being assessed. In this instance, Synthetix, the protocol behind SNX, is a project that has been involved in the DeFi space since nearly its inception. It initially launched on the Ethereum blockchain and subsequently shifted its operations to the Optimism chain ecosystem. In this scenario, this token serves as an illustrative example to demonstrate the evolution of the Optimism ecosystem. Despite not being the native token of the blockchain, it currently holds a market capitalization that is fairly close.
For instance, let’s consider Arbitrum, which is a highly comparable ecosystem to Optimism, as they both function as an Ethereum Layer 2 solution and possess similar market capitalization for their native blockchain tokens. In this case, Arbitrum’s most prominent token, excluding ARB (the blockchain’s native token), is GMX, with a market capitalization of $430 million, while the ARB token itself holds a market capitalization of $1.4 billion. In contrast, the situation differs within the Optimism ecosystem. The native token, OP, has a market capitalization of $1.36 billion, while SNX holds a market capitalization of $808 million. The greater the development and adoption of a token within the ecosystem, the more extensive the ecosystem can be considered. This market capitalization example serves as one of the parameters to assess when evaluating the maturity of the ecosystem.
The number of token holders also serves as a proxy for understanding the developmental stage at which the ecosystem in general currently stands. In this scenario, we assess the count of addresses that currently hold a balance in their accounts.
Via IntoTheBlock’s Optimism Perspective Dashboard
The much-anticipated Worldcoin WLD token was introduced in early summer, experiencing an initial rapid surge in the number of token holders upon its launch, surpassing 400,000 holders on the Optimism blockchain within the first month. This was primarily a result of the initial months-long onboarding phase, during which users who created a Worldcoin ID received a WLD airdrop. The WLD token, which is currently held by 788,000 addresses, is not far from reaching the 978,000 addresses holding the OP token in the Optimism ecosystem. This further confirms the evolving landscape within which the Optimism ecosystem is situated.
The concentration of large holders serves as an indicator of the level of decentralization within both the token and the ecosystem. This, in turn, assists in determining the development stage of the ecosystem. Moreover, it enables users to pinpoint areas where an excessive concentration of tokens could pose an unfavorable characteristic for the ecosystem, as large holders can introduce additional risks to other token holders.
Via IntoTheBlock’s Optimism Perspective Dashboard
Although this indicator reveals that many tokens within the Optimism ecosystem currently exhibit a high degree of whale concentration, there are two interesting trends to be analyzed. The first notable one is that, once again, SNX demonstrates a remarkably low level of whale concentration when compared to the concentration of the OP token. This trend also serves as a means to gauge the maturity of each token within the ecosystem. The second trend is the swift decline in the concentration of the Worldcoin (WLD) token. Despite being relatively new to the market, its reduction in the concentration of large holders has occurred rapidly, highlighting its fast adoption.
Finally, the last aspect I utilized to assess the maturity and development of the ecosystem is the transaction volume. Despite the ecosystem displaying promising signs of development in other areas, it’s worth noting that the OP token has accounted for the majority of transaction volume over the past year, which may not be a positive indicator.
Via IntoTheBlock’s Optimism Perspective Dashboard
A higher transaction volume indicates increased activity and greater token usage within the ecosystem. The dominance of the OP token in the ecosystem’s transaction volume doesn’t necessarily reflect a picture of adoption or maturity, as it indicates that a significant portion of the ecosystem’s activity still revolves around the blockchain’s native token.
Evaluating the adoption and development of blockchain ecosystems, such as Optimism, involves a multifaceted analysis. Parameters like market capitalization, the number of token holders, concentration among large holders, and transaction volume are critical metrics in this assessment. The comparison between native tokens and other tokens within the ecosystem provides valuable insights into the ecosystem’s progress. It’s noteworthy that while certain areas showcase great adoption and development, others like transaction volume raises questions about broader adoption and maturity. Thus, a holistic examination is essential for a comprehensive understanding of the ecosystem’s evolution.
Assessing Optimism’s Ecosystem Adoption was originally published in IntoTheBlock on Medium, where people are continuing the conversation by highlighting and responding to this story.
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