Try Quests to earn cryptoOptimistic Bears (Redux)
Introduction
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.
Broadly speaking, Optimism helps solve Ethereum’s scalability dilemma. Scalability refers to the rate of transactions per second (TPS) on a blockchain network.
How Optimism Solves Scalability Issues on the Ethereum Network
It's understood that Ethereum is one of the most secure and decentralized blockchains in existence. To keep everything running smoothly, the network is built around three properties: Decentralization, security and scalability. However, because of the limitations due to the blockchain trilemma, Ethereum can only deploy two out of these three properties effectively.
To keep the network functional, the governing body behind Ethereum decided to sacrifice scalability for the sake of security and decentralization. As of this writing, Ethereum has reached its capacity to handle more than one million transactions per day. When this occurs, the Ethereum network cannot scale anymore and will become congested as a result.
Once the blockspace becomes scarce, users on the Ethereum network enter a bidding war in an attempt to get their transactions on the next block. As a result, the gas price rises, making it significantly less affordable for an average user to benefit from a transaction. Besides paying a high gas fee, users on the Ethereum network must also endure long wait times for their transactions to clear.
Source: bybit
Methodology
In this dashboard, we will analyze the impact of the bear market on the Optimism network from various aspects using the Optimism and Ethereum database, which is available on the Flipside chain.
Technical:
> Optimism Tables: > optimism.core.fact_blocks > optimism.core.fact_event_logs > optimism.core.fact_hourly_token_prices > optimism.core.fact_token_transfers > optimism.core.fact_transactions > > Ethereum Tables: > optimism.core.fact_event_logs > optimism.core.fact_hourly_token_prices
Findings
In the charts of this section, we examine the status of optimism blocks in July. The total number of Optimism blocks in July is 3.44 million blocks. The average block created per day is 110.9 thousand blocks. On average, 4620 blocks are created every hour and 77 blocks are created every minute. In the charts, we can see that from July 1st to July 26th, the situation of creating blocks is normal, and on July 27th, we are facing a 30% jump in the number of blocks, which can be attributed to the increase in the price of the Optimism token due to the news about attracting investors. The highest number of blocks created is related to July 29. On this date, 271724 blocks have been created in Optimism.
Findings
In this section, we examine the status of Optimism Bridge's inflow and outflow transactions in various charts in July.
In the chart of inflow transactions, we can see that from July 1 to 26, an average of 90 inflow bridge transactions were processed on Optimism, while for the same date, an average of 800 outflow transactions were processed on Optimism. Approximately 788 percent of outflow transactions are more than inflow transactions. In the charts, we can see that the number of inflow transactions has increased greatly since July 27, which can be the reason for the increase in the price of the Optimsm token following the news about attracting new investors. The highest number of inflow bridge transactions is related to July 30. On this date, 392 inflow bridge transactions with a volume of 14.8 million dollars have been processed on Optimism. While on this date, 574 outflow bridge transactions with a volume of 2.1 million dollars have been processed on Optimism. The highest volume of inflow is related to July 29, which was processed in the amount of 25.6 million dollars during 326 transactions on the Optimism inflow bridge. The highest outflow volume is related to July 22, which was processed at the amount of 29.9 million dollars during 1785 transactions on the Optimism outflow bridge.
Findings
In the charts of this section, we examine the status of optimism transactions and users in July. The average number of transaction per hour in July is 143.2k.
On average, 2390 transaction are processed every minute and 39.8 transaction are processed every second.
In the charts, we can see that from July 1st to July 26th, the situation of processing transactions is normal, and on July 27th, we are facing a 40% jump in the number of transactions, which can be attributed to the increase in the price of the Optimism token due to the news about attracting investors.
The highest number of transactions processed is related to July 29.
On this date, 4.1 million transactions have been processed in Optimism.
On July 29, 25,858 users have made 4.1 million transactions. On July 1, the price of Optimism Token was $0.53, but on July 31, it reached $1.6. In the chart, we can see that the increase in the price of Ethereum has also caused the price of the Optimism token to grow, so we conclude that the price of the Ethereum token has a direct effect on the increase in the price of the Optimism token.
Findings
In the pie charts of this section, we will have a general look at the number of transactions and users of protocol types and action types and protocols. The largest number of transactions from ==protocol types== are related to Dex. More than 82.5k transactions have been made by 20,027 users for Dex. The largest number of users of protocol types are related to bridges (layer 2). 35,296 users have made 72,689 bridge transactions.
The largest number of transactions from ==action types== are related to "Token Contract". More than 73,604 transactions have been made by 35,681 users for "Token Contract". 14,495 users have made 64,404 swap transactions.
The largest number of transactions from ==Protocols== are related to "Uniswap". More than 76.4k transactions have been made by 38,909 users for "Uniswap". The largest number of users of action types are related to "Optimism".
Findings
In July, 1 million transactions of 383971 users have been processed for the Typos protocol. 84% of the number of user transactions in July are related to swaps. 13.5% of transactions are related to Delegate and only 2.38% of transactions are related to liquidity and farming. More than 345,000 transactions were made in July by 164,821 users to use the protocols. The most used protocol is Uniswap, which is used for swap tokens. After Uniswap, the second most used protocol is Optimism Bridge.
Findings
In the charts of this section, we analyze the number of transactions and users of protocols and action types and protocol types in July. The highest daily transaction is related to July 29. On this date, 1460 transactions have been processed by 622 users on Uniswap. The second most used protocol in this date is Optimism Bridge protocol, more than 400 transactions have been processed by 154 users for Optimism Bridge. On July 29, 673 transactions were processed by 2 users for cex. In the charts, we can see that from July 1 to 26, the status of using protocols is normal, but on July 27, due to the increase in the price of the Optimism token, many users used Optimism for swap and bridge tokens. The reason for the increase in the price of the token was the optimism of the news about attracting new investors. Due to the good performance of Optimism compared to its competitors, investors have become more willing to invest in Optimism.
Findings
In the cumulative charts, we can see that 76.4 thousand transactions have been processed for Uniswap.
7492 transactions have been processed for Rubicon's NFT platform.
3942 transactions have been processed for Binance exchange.
Dex has the largest number of users in July.
12,271 transactions were processed for NFT platforms in July on Optimism.
Findings
In the charts of this section, we examine the behavior of users in different months with July. we will see what protocols users have used the most. In July, the Uniswap platform was the most used protocol with 76.4 thousand transactions In the charts, we can see that the number of transactions in July is less than in June and the following months. Although in June, it still had the impact of the Terra crisis, as well as the announcement of the inflation rate by the Federal Reserve on June 15, which caused a sharp fall in the cryptocurrency market. Despite these two important events in the months of May and June, we see that the number of transactions in June is more than in July. The main reason can be the Optimism token airdrop. In August, the Aava platform had the most transactions. In September, Clipper and Pika protocols were used the most compared to other protocols.
In the charts, we can see that Dex was used the most in July and other months.
Conclusion
In this dashboard, we analyzed the impact of the bear market on the Optimism network in July. We have noticed that in July, the number and volume of transactions has decreased compared to June and the months after July. In May, the Terra crisis occurred, and on June 15, the Federal Reserve announced an incresed inflation rate, which caused the market to fall sharply. Despite the occurrence of these two important events, we saw that the Optimism network's performance was better in the month of June than in other months. During the review of protocol types and action types, we found out that the most used action type in June is Token Contract. As a result, it can be understood that the main reason for the increase in transactions in the month of June is the Optimism Token Airdrop. We observed the greatest impact of the bear market on the Optimism network in the month of July, especially from July 1 to 26. On July 27, by increasing the price of the Optimism token to $1.5, the number of transactions and users in the Optimism network increased. Users have used Optimism Bridge and Uniswap platform the most in July.
Findings
In charts, we see the status of payment fees for transactions in the Optimism network. The highest paid fee on July 27 was $0.8. from July 18, the transaction fee rate has increased. One of the main reasons for the growth of the Optimism network and Optimism's superiority over its competitors has been.
The Optimism as L2 is known for its lower transactions fee. When using Optimism, transaction fees must still be paid in ETH. The total paid fee on July is 226 ETH.
The average transactions per user on Optimism is about 16 transactions and the average paid fee by users is 0.001 ETH which is very small in compariosn with paid fee on Ethereum blockchain.