:writing_hand: Observations

• The highest volume was on July 29 with 35.4M OP.

• On July 29, which was the highest volume of swaps for optimism, the amount of swaps (out) was slightly higher than swaps (in).

• On August 4, the highest price for Optimism was $2.

• July 29th and August 4th were the highest number of swaps for optimism with 191k and 177 swaps.

• Since August 4, the price has decreased and the volume and number of swaps have decreased accordingly.

• As can be seen, Optimism price charts are correlated with the volume and number of Optimism swaps.

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The chart in front shows the percentage of price changes of Optimism based on the day.

• On July 28, the highest percentage of daily price growth was Optimism with 63%.
• On June 9, the highest percentage of daily price drop was Optimism with 27%.
• It is clear from this chart that number of swaps and volumes have a direct relationship with price.
• The higher the volume and transactions, the higher the price of optimism.

:writing_hand: Observations

• When the price was between 0.5 and 1, the largest volume of swaps was between 500 and 5M $Op.
• When the price was between 0.5 and 1, the most number of swaps was between 500 and 5M swaps.
• At the time when the price of optimism was between 1.5 and 2 dollars, we see the lowest number of swaps and volume.
• It is clear that when the price of optimism is at the highest price, the number of swaps and volume decreases.

Introduction

What is Optimism?

Optimism is a fast, stable, and scalable L2 blockchain built by Ethereum developers, for Ethereum developers. Built as a minimal extension to existing Ethereum software, Optimism's EVM-equivalent architecture scales your Ethereum apps without surprises.

What is Velodrome?

Velodrome is an AMM designed as the trading and liquidity marketplace on Optimism network, launching on May 31st 2022. Their mission is to be the liquidity base layer of Optimism, allowing users to trade digital assets in a secure way, with very low fees and low slippage.

What is a swap?

Swap facilitates the instant exchange of two non-native tokens between two unique blockchain protocols without the need of commencing the traditional crypto-to-fiat exchange or token migration. It allows users to swap tokens directly from the official private key wallet or the trading account.

Method

I used the table optimism.velodrome.ez_swaps to get the volume and swap transactions on Velodrome and calculate the price of optimism.

I got the amount of swap (in) and swap (out) based on the filter

token_address_in = '0x4200000000000000000000000000000000000042' and token_address_out = '0x4200000000000000000000000000000000042' in dollars and optimism.

I calculated the current price of optimism in terms of dollars and compared it with the obtained volume.

Conclusion

• There has been positive correlation between intraday trading volume and OP’s price.
• The data shows a relationship between OP price and trading volume.
• The swap volume on Velodrome spiked in terms of volume and users at the end of July 2022.
• Since the spike in price and activity there has been a faster decline in the activity than the price
• Since August 4, the price has decreased and the volume and number of swaps have decreased accordingly.
• When the price was between 0.5 and 1, the largest volume of swaps was between 500 and 5M $Op.
• When the price was between 0.5 and 1, the most number of swaps was between 500 and 5M swaps.

THANK YOU FOR READING!

Twitter: mohsen.dastpeyman

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