![]() ![]() But with Ethereum’s impending switch to proof of stake (PoS), do these platforms risk becoming obsolete?Įthereum estimates that PoS will allow for up to 100,000 TPS and gas fees more than 99% cheaper than today’s, outsripping those made available by current Layer 2 solutions. Layer 2 solutions including Optimism, Arbitrum One and Boba Network are useful because they solve a critical problem for Ethereum: Scalability. The Merge: Will Optimism become obsolete? Arbitrum One holds more than 50% of Layer 2 market share. Data supplied by shows $825m TVL locked on Optimism, against Arbitum One’s $2.48bn TVL. By 2021, these applications became a core component of the Ethereum ecosystem.Īs of 9 Jun, there was $4.91bn of total value locked across all Layer 2 protocols, according to Ethereum’s own calculations. ![]() Alongside Arbitrum One and Boba Network, Optimism was at the vanguard of Layer 2. The Layer 2 concept was created to combat these scalability issues. But CryptoKitties and similar events proved that changes needed to be made if Ethereum was to meet the demands of a rapidly expanding community. That one innocuous DApp could cause so much disruption was a crisis for Ethereum. Never more evident was this issue than when the runaway success of CryptoKitties caused large-scale congestion across the entire Ethereum network in 2017. Prohibitive gas fees and poor throughput of only 15 transactions per second (TPS) causes a bottleneck for Ethereum-based DApps, resulting in developers being unable to meet users’ demands. Why is Layer 2 important?ĭespite being far and away the most popular smart contract platform in use today, Ethereum has some considerable scalability issues. What is Optimism (OP) and how does Optimism work? Stay with us to find out. In the following guide, we dive into the nitty gritty of this platform and the OP cryptocurrency. Some of Ethereum’s premier Dapps, including Uniswap, Aave and 1inch, run on Optimism – Source: optimism.io Since Optimism’s technology closely matches Ethereum’s, all Ethereum-based smart contracts can be deployed on Optimism to take advantage of the platform's higher transaction speeds and cheaper gas fees. Optimism’s backend technology stack is dubbed the Optimistic Virtual Machine (OVM), in reference to Ethereum Virtual Machine (EVM). Co-founded in 2019 by chief scientist Benjamin Jones, chief executive officer Jinlan Wang and protocol product manager Kevin Ho, the US-based Optimism released its native OP governance token on. Optimism (OP) is an Ethereum Layer 2 (L2) solution focused on providing low-cost, easy-to-use scalability for Ethereum-based decentralised applications (DApps). The Merge: Will Optimism become obsolete?.Tokens are digital assets that exist on another cryptocurrency's blockchain.ĭue to a lack of data, this crypto may be less suitable for some investors. This means that today's volume is below its average volume over the past seven days. ![]() Optimism has traded on low volume recently. With support set around $1.2 and resistance at $1.24, has plenty of space before hitting resistance. The crypto is 6.03% off its five-day high and is 3.05% higher than its five-day low of $1.16. Price LevelsOptimism is currently trading near its midpoint for the past five-days. This can be useful for both short-term investors looking to ride a rally and longer-term investors trying to buy the dip. The Sentiment Score provides a quick, short-term look at the crypto’s recent performance. The Sentiment Score measures the performance of Optimism over the past five days by volume and price movement. Over the last five days, Optimism has earned a Bearish rating on the InvestorsObserver Sentiment Score. ![]()
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