Optimism Price Prediction as $700 Million Trading Volume Comes In – Time to Buy?

cryptonews.com:

Optimism price rally to new all-time highs could be a harbinger of a better 2023, following a dismal performance in 2022. Over the last couple of weeks, Optimism’s value grew by 41% to trade at $2.36 at the time of writing. Cumulatively, investor holdings surged 147% in 30 days, pushing OP 479% above its all-time low of $0.40 on June 18, 2022.

Following that swing to a new all-time high of $2.50 on January 25, 2023, Optimism price is down 6.7%, as it absorbs increasing selling pressure, as investors cash out for profit. CoinMarketCap shows a massive spike in the 24-hour trading volume to $700 million.

Analysts have in the past concluded that large trading activities are an indication of investors taking on greater risks, which suggests numerous individuals are expecting OP to hit another all-time high. Put simply, there is optimism that OP price will exceed its previous peak.

Apart from a generally bullish market, selected layer 2 protocols like Polygon and Optimism are performing incredibly well in 2023. The network is relatively new but has within a short time, caught the attention of both developers and investors.

Optimism is an Ethereum layer 2 protocol known for supporting scaling solutions. The network outlines that scaling blockchain transactions is the “end game” approach to taking cryptocurrencies mainstream and that can only be achieved by providing a higher transaction throughput while keeping costs down.

As a Layer 2 protocol executing on Ethereum, Optimism rolls out off-chain transactions in batches – assumed to be accurate and valid unless challenged through other mechanisms referred to as fraud proofs.

In other words, Optimism supports transactions off-chain, allowing for higher throughput. Subsequently, the