📝 Introduction

The Optimism network is a layer2 solution that was created to solve the scaling problems of the Ethereum blockchain. Optimism uses Optimisitic Rollup solutions to increase scalability. In this solution, the Optimism network collects and executes transactions in its network and sends them in a compressed form to the Ethereum network, causing the scalability, speed of transactions and their fees to be significantly reduced. The governance token of this network is called OP token.

📃 Purposes of dashboard

In this dashboard, we are looking to examine the relationship between the OP token price and the activity of OP traders. For this reason, after the general review of the swap situation in different Dex, the correlation between the OP token price and other parameters (swap volume, number of swaps, number of swappers) is evaluated in the next step.

✍🏻 Methodology

• In this dashboard, the following tables are used to extract data:
  • optimism.sushi.ez_swaps
  • optimism.velodrome.ez_swaps
  • optimism.core.fact_hourly_token_prices
• Velodrome and Sushiswap transactions are considered in this dashboard.
• Correlation coefficient has been used to analyze the relationship between the price of OP token and the activity of traders.

Sushiswap

In general, the volume of OP token swaps in Sushiswap is small compared to the volume of OP token swaps in Velodrome. The average OP token swap volume in Sushiswap is 7.75k OP, while the OP token swap volume in Velodrome is around 7.85M OP daily. For this reason, the results show that the correlation coefficient between the OP token price and the activity of traders in Sushiswap is weak:

• The correlation between ==OP token price== and ==OP token swap volume== is ==positive== and ==very weak==.
• The correlation between the ==OP token price== and the ==number of OP token swappers== is ==positive== and ==weak==.
• The correlation coefficient between the OP token price and the ==number of OP token swaps== in Sushiswap is ==positive== and ==weak==.

Velodrome

According to the OP token price chart and the OP token swap volume chart in Velodrome, it can be seen that with the increase in the swap volume in the last week of July and the first week of August, the OP token price has also increased in this time frame compared to the previous weeks. Examining the chart of the number of swaps also shows that with the increase in the number of swaps in the first week of August, the price of the OP token has also grown. On the other hand, in June, when the OP token price was around the lowest value, the OP token swap volume in Velodrome was also low.

Examining the chart of “Net OP Trade Volume per Day” shows that at the end of July and the first days of August, the OP token purchase volume was more than the sales volume. For this reason, these days we saw an increase in the price of the OP token.

The analysis of the correlation coefficient between the OP token price and traders' activity on Velodrome shows that:

• The correlation between ==OP token price== and ==OP token swap volume== is ==positive== and ==moderate==.
• The correlation between the ==OP token price== and the ==number of OP token swappers== is ==positive== and ==moderate==.
• The correlation coefficient between the OP token price and the ==number of OP token swaps== in Velodrome is ==positive== and ==strong==. This shows that the OP token price and the number of OP token swaps in Velodrome have almost the same behavior.

💡 Conclusion

In this dashboard, the relationship between the OP price and the activity of traders (swappers) was evaluated.

✅ There is a moderate to strong correlation between the activity of Velodrome exchange traders and the OP token price.

❌ No correlation was observed between the activity of Sushiswap exchange traders and the OP token price. (weak and very weak correlation)

Analyst: Emanoel

***Twitter: ***

Discord: Eman#9698

Special thanks to the Flipsidecrypto 🧡

Correlation(Price,Swap_volume)=0.501

Positive correlation

Moderate Correlation

🥈

Correlation(Price,Swapper_count)=0.503

Positive correlation

Moderate Correlation

🥈

Correlation(Price,Swap_count)=0.64

Positive correlation

Strong Correlation

🥇

Correlation(Price,Swap_count)=0.2

Positive correlation

Weak Correlation

🥱

Correlation(Price,Swapper_count)=0.25

Positive correlation

Weak Correlation

🥱

Correlation(Price,Swap_volume)=0.14

Positive correlation

Very weak Correlation

😴

To check the correlation coefficient:

To obtain the correlation, we used the relationship shown on the right. If we wish to label the strength of the correlation, for absolute values of r, 0-0.19 is regarded as very weak, 0.2-0.39 as weak, 0.40-0.59 as moderate, 0.6-0.79 as strong and 0.8-1 as very strong correlation. On the other hand, the correlation coefficient can be positive or negative. A positive correlation coefficient means that as the value of one variable increases, the value of the other variable increases; as one decreases the other decreases. A negative correlation coefficient indicates that as one variable increases, the other decreases, and vice-versa.