Can Optimism compete with these new advances in the Layer 2 race?

Despite initially establishing a dominant position in the Layer 2 (L2) space upon entering the market, Optimism’s performance has since been surpassed in various areas by other protocols such as Polygon and Arbitrum. .

magi gift

Adding Magi to Optimism could have a positive impact on the protocol. magic is a recently developed client program designed to enhance the diversity and resilience of the OP Stack ecosystem.

Developed in Rust, Magi acts as a consensus client, often called a rollup client, and complements executable clients (such as op-geth) to synchronize transactions across the network. While OP Labs maintains a reference implementation called op-node, Magi performs a similar function, albeit with the added benefit of being a newer solution.

It is worth noting that magic Clients that are not production ready and should not be treated as such. However, it has proven compatible with Optimism and the testnet Base, making it suitable for testing purposes.

back to the present

As of this writing, Optimism is still struggling due to a number of significant challenges. In terms of the day-to-day activities of the protocol, Optimism cannot compete with networks like Polygon and Arbitrum.

Over the past few weeks, the number of daily active addresses on the Optimism network has dropped from 82,000 to 42,000.


stupidnoise: Artemis

The protocol also cannot compete with other solutions in terms of saving users ETH. According to Dune Analytics data, Arbitrum outperforms Optimism in this regard.


stupidnoise: Dune Analysis

Should Holder OP be optimistic?

Optimism’s OP native token faces the consequences of the above information. Over the past few weeks, the velocity of OP tokens has plummeted. This suggests that the OP’s transaction frequency has decreased.

Therefore, the OP’s network growth starts to decline. This further indicates that the number of new addresses where the OP was transferred for the first time decreased.

Despite the drop in OP prices, the MVRV ratio remains positive. This means there are still profitable addresses that can sell their holdings and make a profit in the future.


stupidnoise: Santiment

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According to AMBCrypto

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