Optimism NFT quests drive growth, utilization and volume. Despite the growth, Optimism lags TVL compared to Arbitrum.
Optimism, a DeFi protocol, saw a significant increase in activity thanks to its NFT search projects. The projects have resulted in impressive growth for all participants, with an average growth rate of 32%.
The success of these NFT quests contributed to the overall growth of the Optimism protocol, which increased in value by 56%.
Realistic or not, here is OP’s market cap in terms of BTC
Optimism Quests is an initiative that guides users through various apps on the platform and teaches them how to use these apps in exchange for commemorative NFTs.
Source: Dune analysis
Optimism faces tough competition
Despite this growth, Optimism still lagged behind TVL ccompared to Arbitrum, another decentralized financial protocol. The reason for this may be that users save more ETH while using Arbitrum, as reported by Dune Analytics.
However, there was an uptick in Optimism’s TVL, and it may eventually overtake Arbitrum in the future. According to data from DefiLlama, Optimism’s TVL grew from $516 million to $705.29 million, representing a growth rate of 36%.
Source: Dune analysis
While the price of the OP token continued to rise, there was a drop in daily activity.
Is your wallet green? Check out the Optimism Profit Calculator
In the last month in particular, the number of daily active addresses with OP has decreased from 11,246 to 6,802.
Additionally, development activity on Optimism also declined over the past week, suggesting that developer contributions had dropped. This decrease in development activity led to concerns about upcoming upgrades and updates to the platform.
Source: Sentiment
Despite these challenges, Optimism has forged several strategic partnerships that give reasons for OP token hope. In the past week, Optimism partnered with Sherlock DeFi and ArkhamIntel, two leading decentralized finance protocols.
These partnerships have the potential to increase the reach and use of the Optimism protocol, driving more growth in the future.
The price of the OP token was $2.25 at the time of writing and was down 3.21% in the past 24 hours, according to CoinMarketCap.
This post Assessing the effect of Optimism’s ‘NFT Quests’ on VP holders
was published first on https://ambcrypto.com/assessing-the-effect-of-optimisms-nft-quests-on-op-holders/
