Optimistic Bears
Introduction
In this analysis, You will read about the Optimism blockchain during the month of July. We want to know how healthy was Optimism during July. I went through Optimism and analyzed these metrics:
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How did the network perform?
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What about market performance?
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Were there significant inflows or outflows on bridges?
What is Optimism?
Optimism is one of the leading Layer 2 projects working to scale Ethereum. It uses Optimistic Rollups to bundle transactions together and send them back to Ethereum mainnet for confirmation. Rollups like Optimism offer users substantial gas savings compared to transacting on the mainnet.
Analyzed By Hess - Reading time almost 10 Min.
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Method
To analyze better, I divided my findings into 4 main categories.
- Optimism native token prices ($OP)
- Transactions and chain performance metrics
- Unique and new users
- Fees on Optimism
- Inflow and Outflow to Optimism via bridges
I used transaction and core fact event tables to calculate all mentioned parameters.
Optimism Users
- There were 136K new wallets on Optimism in July which made at least one transaction. 9.2K of new wallets received a token. Both of them are new wallets. The highest number of new users joined Optimism On July 27th. The price of Optimism increased those days significantly. I think the reason new wallets increased it’s because of OP prices.
Inflow and Outflow based on ETH volumes
- Since July 14th, The volume of ETH that bridged to Optimism increased. There were two serious spikes. One was on July 16th with 2.6K ETH and one was on July 29th with 2.7K ETH bridged to Optimism. There are two major events. One is the second part of Optimism Airdrop and the other is the OP prices. I think both impacted ETH volume that bridged to Optimism. 74% of ETH was inflow and 25% was Outflow.
$OP prices
- One of the metrics that. can check for a healthy network is its native token prices in comparison to main Token prices. During July, The OP token prices perform well. Especially at the end of July. The growth of OP token prices was up to 80%. The growth was higher than some key tokens like BTC or ETH. This shows that Optimism performed well which caused growth in their native token.
Optimism is known as one of the busy chains these days. When the number of transactions increases, The success rate become important to the chain performance. As you can see the average success rate on Optimism is above 90%. At the end of July, Optimism faced more transactions, So the failure rate increased. The cumulative chart proves the theory that the slope of failed transactions grew more than success transactions.
- To understand how Optimism first, let's review some basic data. Then, Compare it with other chains like Ethereum and Arbitrum (another layer 2 chain).
3.44M transactions were recorded on Optimism in July. The average daily transaction is around 110K. Every hour, nearly 5K transactions happen on Optimism. Almost 80 transactions per minute and 1.3 transactions per second.
- At the end of July, The total number of transactions doubled in comparison to the beginning of July. The total transactions increased from 120K to 240K daily.
- In those days, Optimism faced 188 transactions per minute and 3 transactions per second. The success rate decreased to 85% on July 29th. So it seems when Optimism faced more transactions, The success rate will decrease.
Compare Optimism performance with Arbitrum and Ethereum
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Ethereum has almost 14 transactions per second. with more than 10 transactions per second in comparison to Optimism, The Ethereum success rate is above 99%.
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Arbitrum has similar transactions per second to Optimism but their success rate is a little higher than Optimism.
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the total transactions on Optimism are a little higher than Arbitrum but their failure transactions are almost 2x than Arbitrum.
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Ethereum transactions are 10x higher than Optimism and Arbitrum but their Failure transactions were 3-4x higher than Optimism.
In total, 4-5K hourly transactions are not too high and In my opinion, their network can not process more transactions. Like what happened to Arbitrum during the Odysee campaign. Their network failed and the Gas fee increased too much for a Layer 2 chain (low fees in comparison to mainnet.
Optimism Fees
When we talk about chain performance, We should mention the FEES. Because of the key features of Layer 2 chains is lower fees in comparison to the mainnet. As you can see the total number of transactions didn’t impact on Optimism fees. The average Fees increased sometimes but the number of transactions didn’t impact. This is a good point for Optimism.
I divided July transactions into two types of users. July Vs. June new wallets. At the beginning of July, The June new wallets had 60-70% of transactions and the new wallets of July had 20-30% of transactions. But day by day, The total transactions of July new wallets increased. At the end of July, The total transactions of July new wallets increased by nearly 60%, and June new users by 40%.
- The average transactions of new users at the beginning of July was 7-9 transactions. It increased to 14-15 transactions per user in the middle of July. At the end of July, The average transactions of users faced too many ups and downs.
- In July, 56% of transactions were made by June new users, and 43% of transactions were made by July new users. The total share is based on only JUNE AND JULY users, not all users.
Conclusion
From this analysis, I can conclude that Optimism is working fine. There were some key metrics that worked fine and we can see improvements.
- The OP prices increased almost 80%.
- Optimism handled above 100K transactions daily and there wasn’t a huge problem. Numbers were not high in comparison to Ethereum but not bad.
- Almost 140K new users joined Optimism during July.
- The Transactions Fees didn’t change too much.
- The Number of bridge transactions out of Optimism was higher than in Inflow but the ETH volumes in Inflow were higher than in Outflow.
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