Optimism Price Prediction 2024: OP Price Analysis
Can OP continue its upward climb?
Key Takeaways
- Optimism’s OP token has been on a recovery lately.
- The majority of the layer 2 scaling solution’s token holders are in profit.
- Can OP grow further?
- One Optimism price prediction says it can reach $4.63 next year.
The Optimism layer 2 scaling solution and its OP token went on an upturn in late 2023. Before Ethereum (ETH) launched its Dencun upgrade, Optimism has seen some good price action.
This followed on from a rise in people using the network after it started hosting the hotly-anticipated Worldcoin (WLD) privacy token, more and more people have been using the network.
Indeed, Worldcoin helped Optimism gather more traffic, with its daily transactions topping one of its biggest rivals, Arbitrum (ARB) in late July.
In 2024, data from Intotheblock showed that, despite a fall in price in the first few weeks of January, nearly 90% of OP holders were making a profit on their investment.
Recently, Optimism said fhe Fjord upgrade is on its way. A few improvements to highlight were RIP-7212 to be available on the Superchain, bringing 20x cheaper native passkey verification. Meanwhile, developers can create smart wallet experiences without the constraints of scale and cost.
OP’s price almost halved since the start of 2024, when it was traded at $3.70.
On June 28, OP was worth $1.79.
Optimism did not respond to a request for comment
Let’s take a look at our own Optimism price predictions. We will also examine some of the Optimism price history, and explain a little about what Optimism is and what it does.
Optimism Price Prediction
Let’s examine some of the Optimism price predictions CCN.com made on June 28, 2024. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate.
| Minimum OP Price Prediction | Average OP Price Prediction | Maximum OP Price Prediction | |
|---|---|---|---|
| 2024 | $1.60 | $3.86 | $3.92 |
| 2025 | $3.83 | $4.43 | $4.63 |
| 2030 | $12.03 | $12.74 | $13.28 |
Optimism Price Prediction for 2024
If the positive momentum continues and OP breaks above its moving averages, it could reach targets between $1.60 and $3.92 by the end of 2024, with the average price set at $3.86.
Optimism Price Prediction for 2025
Technical analysis suggests a potential increase for Optimism in 2025. The minimum OP price expected for 2025 is $3.83 while the maximum one is $4.63. In the middle, it may reach $4.43.
Optimism Price Prediction for 2030
Based on technical analysis, the OP token may reach a maximum level of $13.28 at the beginning of the next decade, while, in the worst scenario, it may go to $12.03. The average expected price is $12.74.
Optimism Price Analysis
Based on today’s classical pivot point (P1) of $1.763584, Optimism has support levels at $1.734914, $1.686309, and the strongest support at $1.657639. Conversely, the resistance levels for Optimism are set at $1.812188, $1.840858, and $1.889463.
Optimism (OP) is currently facing a technical headwind. Most technical indicators, including MACD and RSI, point towards a bearish trend. The MACD at -0.17 and RSI at 30.46 suggest a downtrend with OP entering oversold territory.
While oversold conditions might indicate a short-term bounce, the overall sentiment leans bearish.
Short Term Optimism Price Prediction
The Optimism price prediction for the next 24 hours suggests that OP’s price could rise by around 230%. It could also potentially reach $5.92 by July 27, 2024. Despite this projection, our technical indicators show a bearish sentiment. Over the past 30 days, Optimism has seen 10 out of 30 green days, with a price volatility of 13.03%. Based on this forecast, it appears to be a bad time to buy Optimism.
Our technical analysis predicts that Optimism’s 200-day SMA will rise, reaching $3.11 by July 27, 2024. The short-term 50-day SMA is projected to hit $2.96 by the same date.
The Relative Strength Index (RSI) momentum oscillator, a popular tool for identifying whether a cryptocurrency is oversold (below 30) or overbought (above 70), currently stands at 34.09. This indicates that the Optimism market is in a neutral position.
Optimism Price Performance Comparisons
| Current Price | One Year Ago | Price Change | |
|---|---|---|---|
| Optimism | $1.79 | $1.2209 | +44% |
| Arbitrum | $0.821 | $1.1301 | -29% |
| Ethereum | $3,435.89 | $1,852 | +85% |
| Polygon | $0.5622 | $0.6239 | -11% |
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
| Time period | Optimism price |
|---|---|
| Last week (June 21, 2024) | $1.84 |
| Last month (May 28, 2024) | $2.55 |
| Three months ago (March 28, 2024) | $3.67 |
| One year ago (June 28, 2024) | $1.22 |
| Launch price (June 1, 2022) | $1.44 |
| All-time high (March 10, 2024) | $4.70 |
| All-time low (October 20, 2023) | $1.17 |
Who Owns the Most Optimism (OP) Tokens?
On June 28, 2024, one wallet held more than 30% of OP’s supply.
Richest OP Wallet Addresses
As of June 28, 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 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.
Fact Box
| Supply and distribution | Figures |
|---|---|
| Maximum supply | 4,294,967,296 |
| Circulating supply (as of June 28, 2024) | 1,121,728,540 (26% of maximum supply) |
| Holder distribution | Top 10 holders owned 68.27% of supply, as of June 28, 2024 |
From the 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 cost people time and, perhaps more importantly, money.
A range of layer 2 scaling solutions, programs which take a transaction off the main blockchain, carry it out elsewhere, and put it back on the system, were founded to solve this problem.
The OP token, which came onto the open market in 2022, supports the platform.
How Optimism Works
Optimism uses something called optimistic roll-ups to verify transactions. This means that transactions are treated as being valid, with all verifications taking 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 coming to an end.
As ever with crypto, you will need to make sure you 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, too, that prices can, and do, go down as well as 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 will also need to make sure that you never invest more money than you can afford to lose.
Optimism Attention Tracker
Here is a chart for Optimism (OP) Google search volume for the past 90 days. This represents how many times the term “Optimism (OP)” has been Googled over the previous 90 days.
FAQs
It might do but, according to technical analysis, it may happen at the beginning of the next decade. Keep in mind that Optimism has never traded at $10 before, with its highest price of $4.7033, reached on March 10, 2024. OP token holders can vote on changes to the Optimism crypto platform. People can also buy, sell and trade OP on exchanges. Will Optimism reach $10?
What is Optimism used for?
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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