Optimism: Can this new announcement save OP from the bear attack

  • Optimism announced that voting for its Retroactive Public Goods Financing (RetroPGF) was ongoing, at press time. 
  • Daily active addresses of OP increased but market indicators supported the bears.

Optimism [OP] has been witnessing a decline in key metrics lately, which is concerning for the network.

As per Dune, Optimism’s number of daily transactions has been declining since the middle of January 2023, suggesting less usage. However, the scenario might change soon following Optimism’s newly announced developments.

Source: Dune

Read Optimism’s [OP] Price Prediction 2023-24

The optimism ecosystem is evolving

Optimism recently announced via a tweet that voting for the second round of Retroactive Public Goods Financing (RetroPGF) was underway. 

In another tweet, Optimism mentioned that the ecosystem was confident that once users try Optimism first hand they’ll stick around to learn about the larger vision the Optimism tech stack empowers, such as Optimism Governance and RetroPGF.

To clear the air, RetroPGF 2 will allocate 10 million OP tokens to fund public goods that support the development and usage of the OP Stack.

According to the official statement, the Collective can build a flourishing ecosystem and a more successful economy by funding public goods responsibly.

RetroPGF Round 2 will fund public goods that support the development and usage of the OP Stack. This falls into three main categories, namely, infrastructure, tooling, and education.

Apart from this, Optimism Daily, a Twitter account that posts updates related to the Optimism ecosystem, revealed that there were over 300 projects being deployed on Optimism to date, reflecting the growth and increased adoption of the blockchain. 

Are the metrics suggesting an increase in usage?

Meanwhile, the network registered an uptick in its revenue last week, which looked promising. Additionally, after a short decline, OP’s daily active addresses also climbed, suggesting more users were present on the network.

Therefore, increasing the chances of more network usage. Moreover, OP’s velocity also increased last week, which indicated that the asset was being transferred among more wallets.

Source: Santiment

Realistic or not, here’s OP market cap in BTC‘s terms

OP at bears’ mercy

While a few metrics were in Optimism’s favor, its daily chart revealed a clear bearish advantage, which corresponded to the ongoing market sentiment.

As per CoinMarketCap. OP’s price declined by nearly 14% in the last 24 hours, and at press time, it was trading at $1.98 with a market capitalization of over $624 million.

OP’s Relative Strength Index (RSI) suggested that the price shedding might continue further as the graph declined considerably.

The same remained true with the Chaikin Money Flow (CMF), which also was on a downtrend. The Exponential Moving Average (EMA) Ribbon’s data revealed that the bulls’ advantage was about to end, as it displayed the possibility of a bearish crossover in the coming days.

Source: TradingView

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