📊 Optimism Network Faces TVL Decline
Ethereum-based Layer-2 network, Optimism, has seen a notable decline in its total value locked (TVL), with current figures at $643 million, the lowest since October 2023. TVL represents the total value of all cryptocurrencies locked within decentralized finance (DeFi) protocols on the network.
🔸 Why is Optimism’s TVL Dropping?
The decrease in TVL indicates that users are withdrawing their assets due to market downturns or heightened volatility. Optimism had previously reached a peak TVL of $1.05 billion on March 17, but it has been on a downward trajectory since then.
Last month alone, Optimism’s TVL fell by 18%, mirroring an overall decline in the cryptocurrency market, which stands at $2.23 trillion. The global cryptocurrency market value dropped by 12% over the past month, affecting liquidity on Layer-2 networks and reducing Optimism’s monthly revenue by 9% to $2.33 million.
🔸 How is the OP Altcoin Performing?
Currently, the OP altcoin is trading at $1.51, having declined 32% in the past month due to general market conditions. Data from a one-day price chart shows a significant downward trend for the altcoin.
However, a potential approval of the Ethereum ETF this month could result in a price surge for OP. Asset managers such as VanEck, Grayscale, and others have submitted amended registration statements for spot ETH ETFs to the U.S. Securities and Exchange Commission.
🔸 Potential Future Indicators
– Approval of Ethereum ETFs could boost OP’s value.
– Increased demand for Layer-2 networks may raise OP’s price.
– A positive correlation with Ethereum may benefit OP’s market performance.
With new funds possibly going live and renewed interest in Layer-2 solutions, OP’s price could surpass the $1.7 mark. This could mark a significant recovery for the altcoin and Optimism network as a whole.
