Lately, the Layer 2 (L2) blockchain network called Optimism (OP) has experienced a surge in interest following the launch of the new cryptocurrency Worldcoin (WLD). Worldcoin, founded by OpenAI CEO Sam Altman, stands out as a project aiming to address issues like income inequality and online identity verification. While initially planned on the Polygon Network, Worldcoin made the decision to switch to Optimism to explore its offerings and expand accessibility. With this change, Optimism witnessed an unexpected surge in network activity, reaching record daily transaction numbers on the blockchain.

Worldcoin's Transition to Optimism

The Worldcoin project gained attention with the World App, which reached over 1.6 million registrations during its Beta phase, with over 500,000 monthly active users. This success motivated Worldcoin to seek the opportunities Optimism could provide in reaching developers and users within an aligned ecosystem. On May 11, an announcement was made to transition Worldcoin from the Polygon Network to Optimism. This strategic move brought new possibilities to the project and significantly increased daily transaction volumes on the Optimism network.

Increased Activity and Daily Active Addresses on Optimism

Worldcoin's migration to the Optimism network resulted in the highest daily transaction volume for Optimism since January. As of July 27, the daily transaction count reached 944,000, while Arbitrum's daily transaction count on the same day was recorded at 660,000. With this surge, the daily active addresses on the blockchain increased by 22% since the launch of Worldcoin. In comparison, Arbitrum only experienced a 2% increase in unique addresses during the same period.

Comparison of Total Value Locked (TVL) between Optimism and Arbitrum

The increased interest also had an impact on the total value locked (TVL) in decentralized finance (DeFi) protocols on Optimism. Since the launch of Worldcoin, Optimism's TVL grew by 4%, while Arbitrum's TVL decreased by 3%. Nevertheless, as an L2 solution, Arbitrum maintains a leading position with 55% market share and the highest TVL of $5.98 billion. Optimism's TVL stands at $2.9 billion.

Worldcoin (WLD) Price and Demand Situation: Following Worldcoin's launch, the price of the WLD token experienced a 4% decline. After an initial sharp increase in daily demand and active addresses, recent data shows a slowdown in this growth, possibly indicating waning interest in the project. During the same period, it was noted that the majority of transactions on the Optimism network were profitable, surpassing the rate of loss-making transactions.

In Summary

The Optimism (OP) blockchain network has gained significant momentum with the launch of Worldcoin and its transition to Optimism. The increase in daily transactions and daily active addresses reflects the project's popularity and interest among users. However, the decline in Worldcoin's price and demand serves as a reminder of the volatile nature of the market. Therefore, it remains crucial for Optimism to continue providing sustainable solutions to effectively compete in the space. #OP #OPTIMISM #WLD #Worldcoin $OP $WLD

Analysis of the OP/USDT Technical Chart:

The current trading price of OP is $2.425, representing a 27% decrease from its recent high in February. However, the chart shows that OP has generated high returns for investors in the past 3 months, with a 300% increase.

Source:- TradingView Analysis of CryptoPatel

Currently, OP is holding strong support at the neck line level, and it is expected to continue to do so. However, if it breaks down, there is a significant down leg waiting for the breakdown, and a 50% decrease is expected.

In the event of a breakdown, the first target is expected to be $1.642, with a second target of $1.16. Two major support points to watch are $1.642 and $1.435, with the possibility of a great entry point at a retracement of 0.5 and 0.618 at these levels.

The current resistance level for OP is $3.16.

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#crypto2023 #Altcoin #OP #OPTIMISM #bitcoin

If you are a holder of $OP , this is for you:

- Mark your calendars for May 31st! A substantial amount of $OP , totaling 154.6M ($252M), will be unlocked after just one day. This represents 3.6% of the total supply and a significant 46% of the circulating supply.

- The unlocked $OP tokens will be distributed as follows: 81.6M ($133M) to core contributors and 73M ($119M) to investors.

- Noteworthy funding rounds for #Optimism include: $3.5M raised in the Seed Round on December 15, 2020, $25M raised in the Series A Round on February 24, 2021, and a substantial $150M raised in the Series B Round on March 17, 2022.

- Prominent investors, such as Paradigm, IDEO CoLab Ventures, and Andreessen Horowitz (a16z), have contributed to the success of #Optimism

- The total financing amounts to an impressive $178.5M and will allocate a total of 730M $OP tokens, representing 17% of the overall supply.

- With an estimated average cost of $0.2445 per $OP token to investors, the current price of $1.63 suggests a potential 6x return on investment.

- It's worth noting that token unlocks often coincide with significant selling pressures as some investors look to offload their holdings.

Given this information, do you perceive this upcoming unlock as a bullish or bearish event for #Optimism and the $OP token?

#OPTIMISM #OP #Ethereum

Introduction

What Is Optimistic Rollup?

Optimism is “Optimistic Rollup,” which is basically a fancy way of describing a blockchain that piggybacks off of the security of another “parent” blockchain. Specifically, Optimistic Rollups take advantage of their parent chain’s consensus mechanism (like PoW or PoS) instead of providing their own. In Optimism’s case, this parent blockchain is Ethereum.

How Do Optimistic Rollups Work?

Transaction Execution and Aggregation

Users submit transactions to validators, also known as aggregators, who process the transactions on the optimistic rollup. Unlike on-chain transactions, which can be prohibitively expensive due to high gas fees, optimistic rollups are able to process multiple transactions at once. The validators then compress the data generated by these transactions into one batch, which is then published on the Ethereum mainnet.

State Commitments and Fraud Proving

Every state transition on the optimistic rollup chain produces a new state, which the operator commits to by computing a new state root. This state root is hashed and stored in the rollup contract. Additionally, the operator commits a Merkle root for the transaction batch itself, which allows anyone to prove the inclusion of a transaction in the batch by presenting a Merkle proof.

However, optimistic rollups do not publish cryptographic proofs of validity for off-chain transactions. Instead, they assume that off-chain transactions are valid and rely on a fraud-proving scheme to detect cases where transactions are not calculated correctly. After a rollup batch is submitted on Ethereum, there is a time window called a challenging period during which anyone can challenge the results of a rollup transaction by computing a fraud-proof.

If the fraud-proof succeeds, the rollup protocol re-executes the transaction(s) and updates the rollup’s state accordingly. The other effect of successful fraud-proof is that the sequencer responsible for including the incorrectly executed transaction in a block receives a penalty.

L1/L2 Interoperability

Optimistic rollups are designed for interoperability with Ethereum Mainnet and allow users to pass messages and arbitrary data between L1 and L2. They are also compatible with the Ethereum Virtual Machine (EVM), so you can port existing dapps to optimistic rollups or create new dapps using Ethereum development tools.

Asset Movement

Users deposit ETH, ERC-20 tokens, and other accepted assets in the rollup’s bridge contract on L1 to use an optimistic rollup. The bridge contract then relays the transaction to L2, where an equivalent amount of assets is minted and sent to the user’s chosen address on the optimistic rollup. Withdrawing from an optimistic rollup to Ethereum is more difficult due to the fraud-proving scheme. If a user initiates an L2 > L1 transaction to withdraw funds escrowed on L1, they must wait until the challenge period, which lasts approximately seven days, elapses.

Multi-Round Interactive Proving

Optimistic rollups are switching to multi-round interactive proving, achieving the same objective of detecting invalid rollup operations more efficiently. Multi-round interactive proving involves a back-and-forth protocol between the asserter and challenger overseen by an L1 verifier contract, which ultimately decides the lying party. After an L2 node challenges an assertion, the asserter is required to divide the disputed assertion into two equal halves. Each individual assertion in this case will contain as many steps of computation as the other.

The challenger will then choose what assertion it wants to challenge. The dividing process, called a bisection protocol, continues until both parties are disputing an assertion about a single step of execution. At this point, the L1 contract will resolve the dispute by evaluating the instruction (and its result) to catch the fraudulent party.

Pros and Cons of Using Optimism

ProsConsReduced FeesLimited Smart Contract FunctionalityScalabilityLonger Withdrawal TimesCompatibility with EthereumSecurity RisksTrustless FinalityImproved Security

Pros

Reduced Fees

One of the primary benefits of using optimistic rollups is the reduction in fees associated with Ethereum transactions. Optimistic rollup operators bundle multiple off-chain transactions in large batches before submitting them to Ethereum. By spreading fixed costs across multiple transactions in each batch, fees for end-users are reduced.

Scalability

Another advantage of optimistic rollups is improved scalability. Since computation and state storage are moved off-chain, the Ethereum network can process more transactions per second. This is important as Ethereum continues to grow and attract more users.

Compatibility with Ethereum

Optimistic rollups are designed to operate on top of Ethereum, making them compatible with the Ethereum ecosystem. This means that developers can migrate existing smart contracts on Ethereum to optimistic rollup chains without extensively modifying codebases. Additionally, developers and project teams using optimistic rollups can take advantage of Ethereum’s infrastructure, such as programming languages, code libraries, testing tools, client software, deployment infrastructure, and more.

Trustless Finality

Optimistic rollups provide trustless finality, which guarantees that a transaction, so long as it’s valid, will eventually be confirmed. Fraud proofs are important because they facilitate trustless finality in optimistic rollups. Trustless finality is a quality of optimistic rollups that guarantees that a transaction—so long as it’s valid—will eventually be confirmed.

Improved Security

Optimistic rollups rely on the main Ethereum protocol for data availability, censorship resistance, and settlement. This makes optimistic rollups more secure than pure off-chain scaling protocols like sidechains that do not rely on Ethereum for security.

Cons

Limited Smart Contract Functionality

One of the primary drawbacks of optimistic rollups is their limited smart contract functionality. Although optimistic rollups are compatible with the Ethereum ecosystem, they cannot support all the features and functions of the Ethereum blockchain. This is because optimistic rollups execute transactions outside of Ethereum but post transaction data to Mainnet as calldata.

Longer Withdrawal Times

Withdrawing from an optimistic rollup to Ethereum is more difficult owing to the fraud-proving scheme. If a user initiates an L2 > L1 transaction to withdraw funds escrowed on L1, they must wait until the challenge period—roughly seven days—elapses. This makes the withdrawal process longer and more cumbersome than traditional Ethereum transactions.

Security Risks

Optimistic rollups rely on the assumption that off-chain transactions are valid and do not publish proofs of validity for transaction batches posted on-chain. This separates optimistic rollups from zero-knowledge rollups that publish cryptographic proofs of validity for off-chain transactions. Optimistic rollups rely on a fraud-proving scheme to detect cases where transactions are incorrectly calculated. While this scheme works in theory, there is always a risk of malicious actors exploiting vulnerabilities in the system.

Conclusion

Optimistic rollups offer many benefits for Ethereum transactions, including reduced fees, improved scalability, compatibility with Ethereum, trustless finality, and improved security. However, there are drawbacks, such as limited smart contract functionality, longer withdrawal times, and security risks. Optimistic rollups are a promising solution for scaling Ethereum, but they are not without challenges like any technology. As Ethereum continues to grow and attract more users, it will be interesting to see how optimistic rollups evolve and adapt to meet the needs of the community.

#OP #OPTIMISM #ARBITRUM #ETH #Ethereum

Token Unlock:

386M $OP ($571) will be unlocked Today., accounting for 9% of the total supply.

This is the first unlock for core contributors and investors.

Funding Rounds for Optimism:

Seed Round: Raised $3.5M on 15 Dec 2020.

Series A Round: Raised $25M on 24 Feb 2021.

Series B Round: Raised $150M on 17 Mar 2022.

Investors include Paradigm, IDEO CoLab Ventures, and Andreessen Horowitz (a16z).

Total financing amounts to $178.5M, allocating 730M $OP (17%).

Whale Activity:

A whale recently deposited 1.04M $OP ($1.48M) to #Binance.

The whale withdrew $OP from #Binance whenever the price rose.

Average withdrawal price was $2.46.

Fear of the upcoming massive unlock may have led the whale to sell some $OP at a loss.

Unlabeled Wallet Transactions:

Wallet 0xa202 dispersed 21.49M $OP ($23.26M) to 21 different addresses.

Wintermute Trading 0xdbf received the most, with 5.46M $OP ($8.03M).

Coinbase received a total of 3.76M $OP ($5.56M).

Six fresh addresses jointly received 4.25M $OP ($6.21M) from #Coinbase, averaging ~708.5K $OP ($1.03M) each.

The unlabeled wallet received 21.49M $OP ($32.19M) from 23 addresses over the past 8 days.

In the past 24 hours alone, it received 12.78M $OP ($17.14M) in total.

Twenty-two out of those 23 addresses received their $OP from wallet 0x1ea "OP Labs" in early April 2022.

Uncertainty remains whether this is part of the token unlock or an investor clearing out $OP .

Market Impact:

With 386.5M $OP ($587.5M) expected to unlock today, traders should exercise caution.

$OP price remained stable around $1.61 for 6 days before a sharp drop 16 hours ago.

Potential selling pressure at the current token price amounts to approximately $600M.

Disclaimer: The information provided here is based on available data and should not be considered financial advice. Conduct thorough research and consult professionals before making any investment decisions.

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#OP #OPTIMISM #feedfeverchallenge #BRC20 #Unlocks

The cryptocurrency community is abuzz with excitement as Optimism (OP), a prominent altcoin, prepares for a highly anticipated token unlock event. This event is expected to have a significant impact on the price and overall token supply of OP, making it a crucial moment for investors and enthusiasts alike.

Token Supply Overview

Optimism (OP) currently boasts a total supply of 4,294,967,296 tokens, with 16.4% already in circulation. The remaining tokens are locked in various contracts serving different purposes, including allocations for the team, investors, ecosystem development, community support, and treasury reserves.

The Token Unlock Event

The countdown has begun, and on July 30, 2023, at 07:00 (04:00 UTC), OP will experience a token unlock of 24.16 million tokens, valued at approximately $36.24 million based on the current market price of $1.50 per token.

Impact on Supply and Price

This token unlock event signifies a 3.56% increase in the circulating supply of OP, resulting in a corresponding 2.41% decrease in the locked supply. The market has already responded with a modest uptick of 0.67% in the token's price in the past 24 hours, contributing to a commendable market cap of $1.02 billion.

Precise Distribution

The unlocked tokens will be distributed with precision. A total of $19 million will be allocated to the primary team responsible for driving the project's success, while another $17 million will be set aside for loyal investors who have been supporting OP from its inception. This strategic allocation aims to reward those who have played an instrumental role in the project's growth.

Anticipation for Future Events

As the unlocking date approaches, many are keenly observing the market's reaction to this event. The next key unlocking event for OP is scheduled for August 30, building anticipation for potential market movements in the coming weeks. OP's community is on the edge of their seats, eagerly awaiting the future of their beloved altcoin.

In Summary

The token unlock event for Optimism (OP) has captured the attention of the cryptocurrency community, as it marks a crucial milestone in the coin's development. With strategic token allocation and an eager community, all eyes are on OP's price and supply movements, making this event a significant moment for the altcoin's future. #OP #OPTIMISM #OP/USDT $OP #tokenunlocks