Optimism Price Prediction 2025: Continued Growth to Drive OP to New Highs

Key Takeaways

• Optimism’s OP token has been on a recovery lately.
• Can OP grow further?
• One Optimism price prediction says it can reach $4 next year.

The Optimism Layer-2 scaling solution and its OP token went on an upturn in late 2023. Optimism had seen some good price action before Ethereum (ETH) launched its Dencun upgrade. 

This followed a rise in users of the network after it started hosting the hotly anticipated Worldcoin (WLD) privacy token; more and more people have been using it.

Indeed, Worldcoin helped Optimism gather more traffic, with its daily transactions topping  one of its biggest rivals, Arbitrum (ARB), in late July. 

OP’s price has halved since the start of 2024, when it was traded at $3.70.

Meanwhile, on Oct. 23, Optimism announced it was bringing fault proofs to the Base platform.

On Oct. 24, 2024, OP was worth about $1.70.

Let’s take a look at our own Optimism price predictions. We will also examine some of optimism’s price history and explain a little about what optimism is and what it does. 

Optimism Price Prediction

Let’s examine some of the Optimistic price predictions CCN made on Oct. 24, 2024. It is crucial to remember that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate.

OP Price Prediction 2024

The price of OP in 2024 is likely to fluctuate between $0.80 and $4, depending on whether the bearish or bullish scenarios play out. If wave Z completes a lower low, we could see a dip to $0.80. Still, if OP breaks out of the ascending triangle, it could rise significantly, with $2.50 being a reasonable average target amid market recovery efforts.

OP Price Prediction 2025 

By 2025, OP could gain more traction as the broader market potentially enters another growth phase, pushing prices higher. If new developments within Optimism’s ecosystem or broader crypto adoption take place, OP could climb to $6, while in a slower growth environment, it might settle around $3.50.

OP Price Prediction 2030

Looking to 2030, the long-term growth potential of OP lies in the continued adoption of Layer-2 scaling solutions, which could drive prices up to $18 in a highly favorable scenario. However, in case of slower adoption or market downturns, the price may stabilize around $10, with $2 representing a conservative minimum if there are setbacks in the broader market or project development.

OP Price Analysis

Since Oct. 20, 2023, OP’s price has risen from $1.15 to a peak of $4.80 by March 6, marking the end of a strong uptrend.

Afterward, the price dropped by 38.5%, falling below $3 by March 20. By Aug. 5, OP had plunged to $1, losing over 78% of its value.

This decline potentially completed a WXY correction, forming an ascending flat triangle.

OP recently broke above descending resistance but remains below the $2 horizontal resistance. Currently, the price interacts with ascending support as it nears the triangle’s apex.

The breakout direction will signal the next trend, with equal chances of moving either up or down.

In the bearish scenario, wave Z of the corrective pattern could push OP to $0.80. Alternatively, an upside breakout could signal the start of a new bull phase.

Short-term OP Price Prediction

The wave structure inside the ascending triangle is inconclusive, but further movement will provide clarity. If the recent downtrend to $1.48 on Oct. 3 represents the start of wave Z, a lower low may follow.

However, if OP is forming a leading diagonal, the Sept. 28 high could mark wave three. A higher-high would confirm the five-wave pattern and signal a bullish continuation after a correction. 

Optimism Average True Range (ATR): OP Volatility

The Average True Range (ATR) measures market volatility by averaging the largest of three values: the current high minus the current low, the absolute value of the current high minus the previous close, and the absolute value of the current low minus the previous close over a period, typically 14 days.

A rising ATR indicates increasing volatility, while a falling ATR indicates decreasing volatility.

Since ATR values can be higher for higher-priced assets, normalize ATR by dividing it by the asset price to compare volatility across different price levels. On Oct. 24, 2024, Optimism’s ATR was 0.038, suggesting relatively low volatility.

Optimism Relative Strength Index (RSI): Is OP Overbought or Oversold?

The Relative Strength Index (RSI) is a momentum indicator traders use to determine whether an asset is overbought or oversold.

Movements above 70 and below 30 show over and undervaluation, respectively. Movements above and below the 50 line also indicate if the trend is bullish or bearish.

On Oct. 24, 2024, the Optimism RSI was at 45, indicating slightly bearish conditions.

Optimism and the CCN Index

The CCN Index uses various indicators to determine a cryptocurrency’s price momentum.

On Oct. 24, 2024, Optimism scored 27.9 on the CCN Index, suggesting weak price momentum.

Optimism Price Performance Comparisons

Advantages and Disadvantages of Optimism

CCN’s Senior Research Analyst, Toghrul Aliyev, took a deep dive into Optimism. Here are some of the advantages and disadvantages he found out.

Advantages of Optimism

• Low Transaction Fees : Optimism offers significantly lower transaction fees than the Ethereum mainnet, with most transactions costing below $0.01.

• Adoption of OP Stack: The OP Stack is utilized by various high-profile projects, enhancing its credibility and utility. Examples include Base (Coinbase’s Layer 2 solution), Worldcoin by Sam Altman, and opBNB within the BNB ecosystem.
• Respected Investor Backing : Optimism has backing from Andreessen Horowitz and Paradigm, two of the most highly respected venture capital firms in crypto. These firms are known for investing in projects with significant potential.

• Developer-Friendly Environment: Optimism is highly appealing to developers due to its EVM compatibility and minimal changes required for existing Ethereum dApps. This makes it easy for developers to deploy their applications on Optimism without extensive rework.
• Security: Optimism inherits the strong security guarantees of the Ethereum Mainnet. All transactions processed on Optimism are eventually posted to Ethereum, ensuring robust security through Ethereum’s proof-of-stake consensus mechanism.
• High Total Value Locked (TVL) : Optimism ranks among the top three Layer 2 platforms in Total Value Locked (TVL). Users commit significant value to the platform which, therefore, shows strong confidence in its reliability.

Disadvantages of Optimism

• High Competition : Optimism operates in a highly competitive market. Over 40 Layer 2 projects have over $10 million in total value locked (TVL).
• Long Withdrawal Times: Withdrawing funds to Ethereum takes longer on Optimism due to its use of optimistic rollups.
• Lower Transaction Throughput: Optimism’s theoretical throughput is 2000 transactions per second (TPS). However, its actual performance has been much lower. Historically, its TPS averages around 6.3 , not the fastest in the industry​.

• Low User Adoption Rates : Optimism has lower adoption than other Layer 2 platforms. It has around 110,000 daily active users, significantly lower than Ethereum and its competitors like Arbitrum, zkSync Era, and Linea.

• Single-Check Fraud Proof: Optimism employs a single-check fraud-proof mechanism, which means transactions are only verified once a dispute arises. This, therefore, relies on the assumption most transactions are valid. If a fraudulent transaction is not challenged in time, it could be finalized, compromising security.
• High Inflation Rate: Optimism states an annual inflation rate of 2%. However, using data  from CoinMarketCap and looking back with the Wayback Machine, the actual inflation rate was 74.04% over one year.
• Low Circulating Supply: As of June 2024, only 26.12% of the total OP token supply is circulating. This is problematic because when the remaining tokens are released, even if done gradually, it will likely cause a significant price drop in the token’s price. Token distribution  does not favor holders, with large allocations reserved for various purposes: 25% for the Ecosystem Fund, 20% for Retroactive Public Goods Funding, 19% for airdrops, 19% for core contributors, and 17% for investors.

• Dependency on Ethereum: Optimism’s success is heavily tied to Ethereum. It would likely be adversely affected if Ethereum faced significant issues or a decline in popularity.

Optimism Price History

Who Owns the Most Optimism (OP) Tokens?

On Oct. 24, 2024, one wallet held more than 30% of OP’s supply.

Richest OP Wallet Addresses

As of Oct. 24, 2024, the five wallets with the most Optimism  tokens were

• 0x2a82ae142b2e62cb7d10b55e323acb1cab663a26. This wallet held 1,294,044,371 OP, or 30.13% of the supply.
• 0x2501c477d0a35545a387aa4a3eee4292a9a8b3f0. This wallet, listed as Optimism: Foundation, held 788,734,944 OP, or 18.36% of the supply.
• 0x790b4086d106eafd913e71843aed987efe291c92. This wallet held 213,320,032 OP, or 4.97% of the supply.
• 0x6ba2c3b591ac4be15cda66b305db4f03e7ff7c9f. This wallet held 174,161,584 OP, or 4.05% of the supply.
• 0xacf32f4e1260636cf1e3066c060c74ad52fe4e9e. This wallet held 102,797,156 OP, or 2.39% of the supply.

Optimism Supply and Distribution

From the Optimism Whitepaper

In its technical documentation or whitepaper , Optimism says that it is, in effect, something called an optimistic roll-up. 

It says: “Optimism is an “Optimistic Rollup,” which is basically just a fancy way of describing a blockchain that piggy-backs off of the security of another “parent” blockchain. Specifically, Optimistic Rollups take advantage of the consensus mechanism (like Proof-of-Work or Proof-of-Stake) of their parent chain instead of providing their own. In OP Mainnet’s case this parent blockchain is Ethereum.”

What Is Optimism?

Although the Ethereum blockchain is the second largest crypto platform, behind only Bitcoin (BTC), it has not been without its problems. In the past, Ethereum was notorious for slowing down when the network was busy. This costs people time and, perhaps more importantly, money.

To solve this problem, a range of Layer-2 scaling solutions, programs that take a transaction off the main blockchain, carry it out elsewhere, and put it back on the system, were founded. 

The OP token, which came onto the open market in 2022, supports the platform.  

How Optimism Works

Optimism uses optimistic roll-ups to verify transactions. This means that transactions are treated as valid, and all verifications take place on the blockchain. 

The OP token is used to pay for transactions on the platform. Holders can also vote on changes to the Optimism protocol. People can also buy, sell, and trade it on crypto exchanges. 

Since Optimism is based on Ethereum, it is a token, not a coin. You might see references to such things as an Optimism coin price prediction, but these are wrong.

Is Optimism a Good Investment?

It is hard to say. On one hand, OP had a strong late 2023. The news that the platform has, at various points over the last year, enjoyed more daily transactions and cheaper fees than Arbitrum will also encourage investors. 

On the other hand, we don’t know whether Optimism will be able to build on recent growth. There is also the elephant in the room. Ethereum has run on a Proof-of-Stake (PoS) consensus mechanism since September 2022, so we have to wonder whether the era of Layer-2 scaling solutions is ending. 

As always with crypto, you should do your own research before deciding whether or not to invest in OP.

Will Optimism go up or down?

No one can really tell right now. While the Optimism crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind that prices can and do go down and up. 

Should I invest in Optimism?

Before you decide whether or not to invest in Optimism, you will have to do your own research, not only on OP but on other related coins and tokens such as Arbitrum or Mantle (MNT). Either way, you must also ensure you never invest more money than you can afford to lose.

Technical analysis by Nikola Lazic.

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