Huobi Research
Published in

Huobi Research

Could OP make Optimism the next Rollup King?

Optimism, one of the four major Ethereum Layer 2 scaling solutions, will soon be launching a new governance and incentive token, OP, much to the community’s excitement. This launch, which includes airdrops to early adopters and active users and contributors, has the potential to stir community enthusiasm to new heights, says a new report from Huobi Research Institute.

The report, titled “Could OP make Optimism the next Rollup king?” examines Optimism’s recent performance in the market and concludes its performance has been outstanding in the Layer 2 market. Despite the overall TVL of Layer 2 falling slightly from US$6.47 billion to US$6.33 billion, Optimism’s TVL bucked the market and rose 15%, from 590 million to 868 million (Figure 1) — almost the only mainstream Layer 2 project to rise within the period. This scenario is a positive one that facilitates a token launch.

Figure 1: TVL changes of the top 10 Layer 2 projects in the last 7 days

Source: L2Beat

Data from The Optimistic Ethereum Explorer shows Optimism has seen a significant increase in the total number of addresses, from 327,000 to 350,000 in one week, a 7% increase. The article speculates that a 19 April article released by Optimism, titled “A New Chapter”, may have fuelled user confidence in the project, leading to this increase. Furthermore, the Optimism network saw a 56% increase in the number of transactions per day, from 45,000 to 70,000, likely due to users’ hopes for receiving token airdrops. However, Optimistic’s challenge lies in retaining users and subsequently, revenue, not just through airdrops. Activities and project development are needed to support the network’s future growth.

According to the Huobi Research Institute report, the Optimism network will have no problems withstanding this massive growth in user and transaction numbers, and this rapid growth will not result in higher fees for individual users, due to stable Ethereum gas prices arising from a lack of congestion.

The Huobi Research Institute report suggests users need to be more actively involved in the Optimism’s activities and development in order to increase their chances of receiving airdrops of OP, and such airdrop events will help with Optimism’s user retention.

The Huobi Research Institute report further evaluates the four major platforms associated with OP Rollups, notably Arbitrum, Optimism, Boba and Metis, and noted that Boba and Metis observed rapid TVL expansion following token issuance, but saw TVL reductions later on due to an insufficiently cultivated ecosystem and the lack of established quality projects such as Uniswap, Aave and Curve not being deployed on these networks. Arbitrum, meanwhile, remains in the leader in the space.

“The question remains surrounding Optimism’s potential to dominate the Rollup space is how the ecosystem can be further developed, following the launch of its OP token,” said Barry Jiang, Researcher at Huobi Research Institute and author of the report. “Considering Optimism has already had a number of proven infrastructure-type projects deployed on it, the possibility of it taking over Arbitrum as the number one OP Rollup platform exists.

“The Battle Royale has kicked off. No matter who comes out on top in the end, users will be able to enjoy cheaper services and more applications, and Layer 2 will soar in popularity.”

Click here to download the full report.

Disclaimer

1. The author of this report and his organization do not have any relationship that affects the objectivity, independence, and fairness of the report with other third parties involved in this report.

2. The content of the report is for reference only, and the facts and opinions in the report do not constitute business, investment and other related recommendations. The author does not assume any responsibility for the losses caused by the use of the contents of this report, unless clearly stipulated by laws and regulations. Readers should not only make business and investment decisions based on this report, nor should they lose their ability to make independent judgments based on this report.

3. The information, opinions and inferences contained in this report only reflect the judgments of the researchers on the date of finalizing this report. In the future, based on industry changes and data and information updates, there is the possibility of updates of opinions and judgments.

4. The copyright of this report is only owned by Huobi Blockchain Research Institute. If you need to quote the content of this report, please indicate the source. If you need a large amount of reference, please inform in advance (see “About Huobi Blockchain Research Institute” for contact information), and use it within the allowed scope. Under no circumstances shall this report be quoted, deleted or modified contrary to the original intent.

5. The copyright of this report is only owned by Huobi Blockchain Research Institute. If you need to quote the content of this report, please indicate the source. If you need a large amount of reference, please inform in advance (see “About Huobi Blockchain Research Institute” for contact information), and use it within the allowed scope. Under no circumstances shall this report be quoted, deleted or modified contrary to the original intent.

About Huobi Research Institute

Huobi Blockchain Application Research Institute (referred to as “Huobi Research Institute”) was established in April 2016. Since March 2018, it has been committed to comprehensively expanding the research and exploration of various fields of blockchain. As the research object, the research goal is to accelerate the research and development of blockchain technology, promote the application of blockchain industry, and promote the ecological optimization of the blockchain industry. The main research content includes industry trends, technology paths, application innovations in the blockchain field, Model exploration, etc. Based on the principles of public welfare, rigor and innovation, Huobi Research Institute will carry out extensive and in-depth cooperation with governments, enterprises, universities and other institutions through various forms to build a research platform covering the complete industrial chain of the blockchain. Industry professionals provide a solid theoretical basis and trend judgments to promote the healthy and sustainable development of the entire blockchain industry.

Contact Huobi Research Institute:
Consulting email:
research@huobi.com
Official website: https://research.huobi.com/
Twitter: @Huobi_Research
Medium: https://medium.com/huobi-research
Telegram: https://t.me/HuobiResearchOfficial

--

--

--

Blockchain industry top think tank, affiliated to Huobi Group.

Recommended from Medium

Building Indorse — Background, Token Sale & Future

Quantstamp audits Curve.fi

Banking Nodes the Who, What and How

“Within 5 seconds, consumers can verify a product’s origin with the blockchain application for…

Comparing and contrasting PayPal balances with USDC

Covalent Protocol technical deep — dive Part 2: Covalent Virtual Machine

The World is a Stage and We Are all Players…

ByteBlock launching NFT platform on CSC network

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Huobi Research

Huobi Research

Blockchain industry top think tank, affiliated to Huobi Group.

More from Medium

Meta-Discourse, Lore, and Echo Chambers

NFT Analysis EP.5 — NFTs Beyond Ethereum

zkRollup — the key to the metaverse