Daily OP price and Total trade activities on Optimism blockchain over the past 90 days

The OP price and the total number of swap transactions and swappers on the Optimism blockchain have a positive relationship over the past 90 days.

As the number of swaps and swappers increase on the Optimism blockchain, the OP coin price increases and vice versa so one can predict whether the price will go up or down by analyzing the change in the number of swaps and swappers with an acceptable approximation.

Methodology

During this dashboard, we will try to assess the relationship between OP price and trade activities such as:

1. Total swap activities on Optimism blockchain
2. OP coin swap activities
3. NFT trading activities
4. Delegators

We will try to find the most influential parameter on the OP price and vice versa.

Daily OP price and OP trade activities over the past 90 days

For the OP coin trade activities, we will try to get information from the flipside’s table to find the data of the most popular DEXes on Optimism: Sushi, Velodrome, and Uniswap (Optimism core table).

The OP price and the OP token swap activity on DEXs over the previous 90 days are positively correlated, as seen in the earlier charts. The volume and number of swaps strongly correlate with the OP price. The OP price and the number of swappers are less connected than other measures.

Daily OP price and NFT trade activities on Optimism over the past 90 days

Using the above charts, we can see NFT trading is not much correlated with OP price as the previous metrics were. Also, in some cases, we can see a negative relationship between the OP price and NFT trading activities. For example, we can refer to September when the OP price decreases, but we can see a new ATH (all-time high) in all cases of the number of sales, buyers, sellers, and sales volume. But since September 26, after ATH, we can see a positive correlation between the OP price and the number of buyers as the number of buyers decreased suddenly with the decrease in the OP price.

Daily OP price and number of delegators over the past 90 days

In the case of the daily number of delegators, we can’t find a solid correlation with the OP price, the same as the NFT trading activities. So, as we see, the number of delegators hit a new ATH during September, although the price was decreasing.

Conclusion

Between all parameters we assessed during this dashboard we have the following result:

1. Total swap activities over 3 DEXes (Uniswap, Velodrome, Sushiswap) and OP coin swap activities had the greatest correlation with the OP price and among them although the number of swap transactions and swappers had a positive correlation but as seen above the swap volume was the most correlated parameter to the OP price.
2. Unlike swap activities, NFT trading activities and delegators don’t have any specific relationship with the OP price and in some cases, we saw some positive correlation with OP price in their chart as the Delegators and NFT trading activities reached an ATH during September although the price was decreasing.

What Is Optimism?

Optimism is a Layer 2 scaling solution for Ethereum. It helps reduce the transaction fee and transaction time on the Ethereum blockchain.

How Does Optimism Work?

Optimism uses roll-ups to process transactions in batches, which helps reduce gas fees and network congestion. Rollups can help users save up to 100 times the gas fee compared to the Layer 1 protocol.

Optimism crypto's roll-up technology bundles hundreds of transactions on Ethereum's Layer 1 into a single transaction. Since multiple transactions exist in a bundle, the gas fee is distributed among all the users. While the roll-up is executed on Optimism's Layer 2, the transaction data is posted to Ethereum's Layer 1 for processing.

Optimistic roll-ups are "optimistic" because every transaction is assumed valid on Optimism's Layer 2, and no computations are performed. If the system suspects fraud, it runs fraud-proofing to verify the transaction.

Here are just a few of the benefits that Optimism crypto offers:

• Scalability: Optimism can achieve a 10–100x improvement in scalability, depending on the nature of the transaction.
• Reduced Fee: Optimism can significantly reduce the overall cost of the transaction. Its rolling technology (discussed in the next section) combines multiple transactions into a single transaction, which helps reduce transaction cost.
• Security: As Optimism's Layer 2 builds up on top of Ethereum, transactions are settled on the Ethereum Mainnet, allowing users to benefit from the security and decentralized environment of the Ethereum blockchain.
• Enhanced User Experience: New projects using Optimism Layer 2 scaling solutions benefit from lower fees, faster transactions — and better overall user experience.