Hello! In this dashboard we are reviewing possible factors that can effect on OP token price, but before we start let’s get familiar with OP and Optimism chain!

By comparing ETH and BTC charts with OP chart, we can say the is correlation with OP and crypto market leaders, not exactly the same moves but similar trends on general.

comparing the similarities, OP follows ETH moves more than BTC, most of the times when ETH price is bullish, OP follows it but with shaper moves and of curse we can see these either on the Bearish moves too.

As we see each inflow spike in OP transfers chart has been answered by an outflow spike and even the outflow volume has been more than inflows in overall while OP price was not fully bearish and did not fully effected by this outflow volume.

Also By focusing on separated inflows and outflows chart we cant’s find any independent reaction from OP price to OP movements, so maybe there isn’t strong correlation between exchange transfers and OP price.

We see some spikes on transaction counts on start or ending a sharp move in OP price, in other words the users activity increase when OP price start some special moves. so it can be counted as a correlation but not strong one!

2: Transitions status

Comparing the success rate chart and the price, we can not see any notable thing here, so in this case there is no correlation with Optimism’s transactions success rate and OP price.

The TPS chart is highly similar to transaction counts chart, with the same trends, so TPS comparing part can have same results like that! the TPS goes higher when the activity on the Optimism chain goes high, and this activity can caused be changes in OP price.

We can say there is a correlation with TPS and OP price but not a strong one.

What is Optimism?

Optimism is a Layer 2 scaling solution on Ethereum to reduce gas fees, process new transactions faster, thereby providing a smoother user experience while maintaining security from the Ethereum original chain. Optimism is an Optimistic Roll-up project, using a fraud-proof security mechanism.

Simply put, users transaction will be considered valid and approved if it cannot be proven fraudulent.

The Roll-up name refers to the separation of transactions from the main chain, then wrapping them in a single batch and creating proof, posting to Layer 1.

What is OP, Optimism’s token?

Optimism launched its OP token on May 31. A total of 231,000 addresses were eligible to claim 214 million OP tokens for free (known as airdrop), That accounts for 5% of the total 4.29 billion supply, meaning 95% of the supply has yet to hit the market.

The OP token gives holders participation rights in The Optimism Collective, a two-tier governance system composed of Token House and Citizens’ House. Citizens’ House will come live later in 2022. Token House, which is already active, governs technical decisions related to Optimism, such as software upgrades. The Citizens’ House governs public-goods funding decisions. 

Methodology

In this dashboard, at the first step we are going to compare OP price history to BTC and ETH price to find possible correlation, In the next part we track OP transfers between exchange and wallets and the effects on OP price, and then we are goin to focusing on OP price vs Optimism chain activities and possible OP price changes effected with these activities.

Possible correlation with the crypto market leaders:

Possible correlation with the exchange transfers

Possible correlation with DEX swaps

The first thing we understand here is that Velodrome and SushiSwap OP pools are healthy! The inflow and outflows in this pools are equal in total which shows no rug or hack are happing in these pools.

If we look at the swaps volume, we see the maximum volume of the swaps has happened on the days that OP price was on the highest amounts, so we can say there can be a correlation between OP price and the activities in DEXs related to OP pools.

Possible correlation with Optimism chain performance

1: Transaction counts

3: Transactions per second (TPS)

Conclusion

• There is a strong correlation between OP price and BTC and ETH price.
• OP follows ETH moves more than BTC, most of the times when ETH price is bullish, OP follows it but with shaper moves and of curse we can see these either on the bearish moves too.
• There no significant OP transfer to or from exchanges in one-way! each inflow spike in OP transfers chart has been answered by an outflow spike and even the outflow volume has been more than inflows in overall while OP price was not fully bearish and did not fully effected by exchange transfers volume.
• the maximum volume of the swaps has happened on the days that OP price was on the highest amounts, so we can say there can be a correlation between OP price and the activities in DEXs related to OP pools.
• Users activity on Optimism chain (including transaction counts and TPS) increase when OP price start some special moves, so it can be counted as a correlation but not strong one!
• Generally OP price is effected by crypto market more than Optimism chain performance.

Thanks for attention!👋

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