Overview

The price of Optimism (OP) fell sharply in early November, dropping from highs above $1.30 on November 6 to as low as $0.79 on November 9. In the weeks since, prices have been on the rise, with OP hit $1.19 on December 14.

This dashboard provide analysis to explain this trend in OP price.

We first describe OP price changes overtime. Then we will go into possible explanatory factors such as $OP flow and Optimism performance. In investigating $OP flow, $OP transfers to CEXes, bridges and swaps will be considered.

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Analysis

Change in Price

Graphs below show how the price of OP has changed over time comparing with ETH and BTC prices.

We can see that in the beginning of November all OP, ETH and BTC experienced price drop. However, as graphs show OP recovered better than the other assets. We can expect that the fall of OP price in the beginning of November resulted from Crypto market crash because of the FTX collapse in general and BTC price in particular. However the price analysis do not explain the change in the price of OP aftermath of the FTC collapse.

$OP Flow

$OP Transfer

Graphs below show Op transfers to and from CEXes. We can see no major surprising OP transfers in the first week of November. However, on 12th November, in the midst of the FTX collapse, we can see a big amount of OP transferred from CEXes to OP network.

Popularity and Performance

While swap can describe the fall of OP price but cannot explain the recovery of price afterwards.

Graphs below show some metrics relevant to popularity and performance of the OP blockchain. We can see that the daily number of active users continued upward trend despite the fall of the price. Also we can see the same trend in the daily number of new users onboarded on Optimism . We can conclude that the popularity of Optimism did not change by the crypto market crash and the fall of OP price.

Similarly, the data shows that the number of transactions on Optimism is experiencing a sharp growth which is not effected by the market crash. Even the ETH volume of transactions has not been influenced largely by the fall of price.

Conclusion

This dashboard investigated the reasons behind the fall and growth of OP price since the beginning of November. The descriptive analysis shows that the OP price dropped similar to other tokens affected by the FTX collapse. However, afterwards OP price recovered much better than the leading tokens ETH and BTC.

The explanatory analysis reveals that while the fear caused by the FTX collapse and the consequent crypto market crash led to a sharp fall in the price of OP, the other activities on OP has not been affected by the incidents.

The number of transactions and active users show the continues growth of the blockchain. This organically increased the demand of OP and make recovery happened.

$OP Bridge

Graphs below show the volume of OP bridges to and from Optimism. The Net bridges does not correlate with the price.

$OP Swaps

Graphs below show the volume of swaps to and from OP over time. We can see an increase in the volume of OP swaps in the beginning of November. The swap volume reach at highest level on November 9th. On November 11th we can see swap from $OP surged. That can explain trading OP to other stablecoin because of the crash in market and also OP price drop.