What is Optimism?

Optimism is a layer 2 chain, meaning it functions on top of Ethereum mainnet (layer 1). Transactions take place on Optimism, but the data about transactions get posted to mainnet where they are validated. It’s like driving in a less crowded side street while benefiting from the security of a highway.

What is OP, Optimism’s token?

Optimism launched its OP token on May 31. A total of 231,000 addresses were eligible to claim 214 million OP tokens for free (known as an “airdrop”). That accounts for 5% of the total 4.29 billion supply, meaning 95% of the supply has yet to hit the market.

source:

Methodology: I used the table optimism.core.fact_event_logs with the conditions event_name='Swap' and ORIGIN_FUNCTION_SIGNATUR not equal to 0x so that I can identify the swaps, and in the second step, using the address of the OP token, I get only the trades related to this token. I brought.

token address: 0x4200000000000000000000000000000000000042

I used the optimism.core.fact_hourly_token_prices table to provide the OP token price in my analysis.

Conclusion:

I did not find any correlation between the price of the OP token and the volume of its transactions; instead, the highest correlation was between the price of the token and the number of transactions for trade-in. It seems that buyers are very interested in the price range of 50 cents to one dollar.

Observations:

• It seems that the trading volume trend has become very weak after July 28, 2022, which had a daily trading volume of 821,000 OP tokens.

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• And practically, this downward trend was completely stabilized with the news on August 5, 2022.

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• The first news was the beginning of reward op in the Aave protocol and the second news was for the velodrome protocol with the title loss of $350K operational funds. Both of these protocols are considered key protocols for optimism.

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• When we look at the table, we see a direct relationship between the price of the token and its trading volume in the short time frame of July 8-28, 2022.

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• Apart from this logical short term, I don't see any relationship between the token price and its trading volume on the chart.

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At lower prices, the volume of transactions is more; that's why I tried to calculate whether users have applied the Dollar-Cost Averaging (DCA) method or not.

What Is Dollar Cost Averaging?

Dollar cost averaging is the practice of investing a fixed dollar amount on a regular basis, regardless of the share price. It's a good way to develop a disciplined investing habit, be more efficient in how you invest and potentially lower your stress level—as well as your costs.

• As you can see, more than 73% of token buyers did not use this method at all, which violates the possibility of this method being widespread at low prices.

Observations:

• Contrary to the volume comparison chart, there is a plausible correlation between the number of unique traders and the operating token price.

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• The highest number of buyers in 3 days after the airdrop token op On June 3, 2022, there were 270 unique wallets at $1.43.

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• Between August 5 and September 9, 2022, there is a good correlation between the price and the number of traders.

Observations:

For the chart comparing the relationship between the number of transactions and the price of the OP token, a perfect correlation is observed, especially after August 4, 2022; after the time chart, it is an entirely solid correlation.

Observations:

• In total, about 17,700,000 op tokens have been traded so far.

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• About 44,800 transactions have been completed for the OP Token trade.

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• In total, 13,694 unique wallets have bought and sold OP tokens.

Observations:

• As you can see, 67 percent of the traded tokens, equal to 11 million and 900 thousand Op tokens, were traded between the prices of 50 cents and one dollar, which shows that there was the most desire to trade OP in this period.

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• Daily transactions also show heavier transactions in the price range of 50 cents to 1 dollars.

How to distribute the price:

WHEN price>0 and price<0.5 then 'The price of the token is between 0 and 0.5 dollars.' WHEN price>=0.5 and price<1 then 'The price of the token is between 0.5 dollars and one 1 dollar.' WHEN price>=1 and price<1.5 then 'The price of the token is between 1 dollar and 1.5 dollars.' WHEN price>=1.5 and price<2 then 'The price of the token is between 1.5 dollars and 2 dollars.' WHEN price>=2 then 'The token price is equal to or greater than 2 dollars.'

Observations:

After using the corr function, which can calculate the relationship and correlation, I got the above results, and according to the above, there is still the highest correlation between the number of trade transactions and the OP price. After that, there is an acceptable correlation between the trader's wallets. And there is the OP price, and there is a negative correlation between the token price and the volume of transactions, which again can be said that these two values ​​are not related.

Source for the corr function: