Introduction

Optimism is a scaling solution for Ethereum's Layer 2 that is able to accommodate all of Ethereum's decentralized applications. Optimism was developed by the Ethereum Foundation (Dapps). Optimism simultaneously reduces the expenses that are connected with each individual transaction while simultaneously increasing the number of transactions that can be executed by Ethereum in a single second. To achieve this, computations are performed off-chain rather than on the Ethereum network, which is where they would normally be carried out if they were to be performed there.

The native token of Optimism is called OP, and there are a total of 4.294 billion in circulation. The Optimism Collective has a two-tiered governance structure made up of the Token House and the Citizens' House, and the OP token entitles its holders to vote in the affairs of both houses.

Method

In the current dashboard I used fact_token_prices_hourly tables on Flipsidecrypto’s database to find the average price of assessed tokens.

Then by use of optimism.core.fact tables calculated the OP token interactions since November, 2022.

Also, tracked the OP transfer state by optimism.core.ez_eth_transfers table over this time.

The optimism.core.dim_labels was used to identify the lable of contracts that OP interactors had interact with.

The period time was selected since November, 2022.

The assessed tokens to comparable with OP are ETH, MATIC, BTC & BNB that are EVM tokens and evaluated on Ethereum chain.

This dashboard has been set up with ETH by default as a comparable token on the first part, but you can change it to other offered tokens after log in to Flipside, by above tape.

Analysis

:mag_right: Findings:

• Since November 6th Op and Top market tokens have declined in price sparkly.
• Since Nov 6th, the highest price over past 3 months, the tokens in the graph right bellow indicate the return percent was in the range from -0.21% to - 32% down.
• The events of FTX (happened in Nov 7th) seem to be the catalyst of the drop in the price of OP and other tokens.

$OP price noted a 29.76% decline when the market took the heat from FTX’s collapse (Fell down from $1.33 in Nov 5th to $0.93 in Dec 18th)

The news saw OP plunge from a daily high of $1.33 on 5 November to a low of $0.84 the following days, before making a week recovery to trade at around $1.16 by 14 December.

The following graphs show the various moving average (MA) that calculated by difference of present day and past 100 days for MA 100-day, for example.

As can be seen for the selected Token (ETH by default) MA200 already are above the MA100 but in OP this just happened in November.

Whilst, we know when the current price and MA100 & 200 move close together, the price are in sideway and a range trend, and effectuated alongside these MAs.

✍🏻 Conclusion

As of Findings above:

1. Price charts of OP, BTC and ETH has same trend shows that they all impacted with same conditions which is originated from bear market condition.
2. Daily token transfers has the most correlations with OP price.
3. There is not much correlations between daily distinct transacting users and daily distinct transferring users with OP price.
4. So seems that impact and influence of bear market is as much as influence of other metrics of Optimism network and its token on OP price.

About:

• Author: HaM☰d

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• Discord: 0xHaM☰d#8391

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• Twitter: @arjmandi_hamed

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• Email: h_arjmandi2012@yahoo.com

Add Text Here

The price of Optimism (OP) fell sharply in early November, dropping from highs above $1.30 on November 6 to as low as $0.79 on November 9. In the weeks since, prices have been on the rise, with OP hit $1.19 on December 14. \n

Analyze the network and diagnose some of the possible reasons for the sudden drop, and slow climb, of OP price in recent weeks. Are there any notable trends in users, transactions, or any other metrics that could explain these events? Note any patterns or outliers you see.

Hey there 👋!

Firstly, I appreciate you sticking with it until the conclusion.

I'm Hamed, a civil engineering Ph.D.

student interested in data analysis.

I've made many similar dashboards and visualizations since I started at Flipside in January.

Please take a look at my various contact details and let me know what you think.

:hourglass_flowing_sand: Transactions and Users State

:mag_right: Findings:

• New Users Count smoothly increased since November, and recorded the higher count of daily new users in Nov, 6 & 21 and Dec 14th, respectively.
• Also, daily count of transactions smoothly increased and peaked at 590.6K in Dec 14th, since November.
• In the other hand the transferred transactions count decreased after peaking at 275.3K in Nov 9th, two days after FTX’s demise.

:hourglass_flowing_sand: Transferring State

:mag_right: Findings:

In the visuals above I tried to track the transferred OP tokens and find the destinations of those by label type.

As can be seen over 75% of volume transferred to unknown addresses, and 16.2% of volume transferred to DEXs.

Although, the most $OP token volume transferred in Dec 14th, but the most average volume transferred in Nov 15th, while the most transferring transactions executed in Nov 9th, just two days after FTX’s demise.

:hourglass_flowing_sand: Swapping State

:hourglass_flowing_sand: Price Changes State

:mag_right: Findings:

As of bar & PIE charts above:

• OP → USDC is the most popular pair among swappers, so that 36.4% of swaps transactions and 42.5% of swaps volume were swapping Op to USDC since November, while in reverse directions these percentages was 34.4 and 38.4%, respectively. The market conditions was significantly low volume. So many users started to sell their OPs to a stablecoin, but not significantly with other pairs.

• WETH → OP: The third popular pair was WETH → USDC in terms of volume.