Introduction

OP is the Optimism native token, which airdropped to optimism users and launched for trading on 6th June 2022. This dashboard will explain the swap volume and the price of the OP token.

Method

In the current dashboard tried track the relationship between OP price and trade volume over time by help of Flipsidecrypto database as following:

• The optimism.core.fact_event_logs table was used to find all swaps transactions and calculated the volume (in $USD) of OP tokens when swapped From or To other assets.

• Also top 10 assets which swapped from or to OP token over time was found by joining with optimism.core.dim_contracts tables.

• Find all swaps for Uniswap, Sushiswap and Velodrome on Optimism from optimism.velodrome.ez_swaps , optimism.sushi.ez_swaps and optimism.core.fact_event_logs

• For Uniswap we look at all the even transactions with Swap Event directed to the Uniswap V3 Routers, then look at transactions with Transfer Event for each transaction.

  • '0xE592427A0AEce92De3Edee1F18E0157C05861564 -- Uniswap V3: Router
  • '0x68b3465833fb72A70ecDF485E0e4C7bD8665Fc45' -- Uniswap V3: Router 2

• For Prices of OP & ETH was found by optimism.core.fact_hourly_token_prices table.

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Analysis

Observation

✍🏻 Conclusion

• Comparing the volume and frequency of swaps to the price of oil reveals little correlation between the two.

• Although the OP price has been falling on the whole, the frequency with which swaps are executed has witnessed both highs and lows during the same time period as the volume of swaps.

• Only the fact that both indicators, like swap volume, have been declining generally is identical.

• Since the OP price began falling by the end of August 2022, the number of swap transactions has followed suit, falling by about half.

• USDC & WETH were the top 2 assets that most traders tends to swapped their OP’s tokens to and from.

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

Is there a relationship between OP price and trade volume?

Make your case by including at least three visualizations.

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.

:telescope: Findings:

The volume and number of swaps (buy or sell) transactions can be used as a gauge of market volatility since they reveal how supply and demand swings affect an asset's market price. This theory clarifies the reasons and mechanisms behind the cyclical nature of the prices of all tradable commodities.

Investors who don't think the asset's current price is reasonable may perceive the frenzy as excessive given that OP's price has skyrocketed in July 2022, from around $0.5 to $1.7 at the end of the month.

The price hit a record high of $1.99 in August of 2022, but there were much more people looking to unload their stock than were looking to acquire.

When viewed in the context of Elliot waves, the period beginning on July 14 (the day the price was at its lowest) and ending on July 26 (when the price rose to $0.93 and then fell to $0.77) is the first Elliot wave, during which the volume of swaps is at its highest and traders are more likely to buy than sell.

The second, longer wave lasted from July 26th to August 2nd, when the price peaked at $1.76, dropped to $1.50, and more traders started unloading their tokens.

And finally, the third wave was calculated, with a price range of $1.5 to $1.99 on August 4th; following that, daily volume tended to drop below 50,000 shares, which is extremely low and inconsistent with the current market climate.

:telescope: Findings:

In the last two charts daily count of swaps transactions and volume swaps from/to OP with cumulative growth are shown.

July was the most volatile month of OP market as most other cryptocurrencies.

The all-time high in transactions count happened in July 29th with 3.4k transactions, and all-time high price took placed in Aug 4th with roughly $2.

In the following sections and visuals tried to track daily top 10 most swapped based on swaps volume of swapped OP in $USD and daily swaps transactions count from and to OP

:telescope: Findings:

As can be seen in the charts above, the top tokens swapped To OP based on swaps volume and transactions count was BEETS & LYRA with roughly 88.7 & 6.07% , respectively.

In total $6M ($5.7M & $392k in cumulative) OP swapped from BEETS & LYRA.

But, based on transactions count, as same as previous section the USDC & WETH were the top tokens whisch swapped for OP.

:telescope: Findings:

As can be seen in the charts above, the top tokens swapped From OP based on swaps volume and transactions count was USDC & WETH with roughly 47 & 38% , respectively.

In total $9.5M ($5.2M & $4.3M in cumulative) OP swapped for USDC & WETH. this volume performed in 22.7K +16.7K transactions count as of cumulative graph.