Velodrome, a new DEX on Optimism, witnessed a 52% increase in TVL. Despite falling trades and testnet performance, positive indicators suggested an optimistic future for Optimism.
Recently, a new decentralized exchange (DEX) on the Optimism network called Velodrome witnessed a 52% increase in total value locked (TVL). This significant growth in TVL has also positively impacted Optimism’s overall ecosystem.
According to DefiLlama, Optimism’s TVL has grown from $525 million to $623 million over the past month, an 18% increase. This growth in TVL is indicative of the increasing popularity and adoption of the Optimism network and its protocols.
Realistic or not, here is OP’s market cap in terms of BTC
Source: DefiLlama
The devil is in the details
However, it is worth noting that the number of transactions on Optimism has decreased according to Dune Analytics. This could potentially affect Optimism’s increasing TVL in the future. The declining number of transactions may be an indication of a lack of liquidity or a lack of interest in the network.
Source: Dune analysis
In addition, a recent one to update revealed that Optimism witnessed degraded performance on the Goerli Testnet. This can have a negative impact on the perception of optimism.
The degraded performance may be due to a lack of scalability or network infrastructure issues. However, it is important to note that the testnet is just a simulation of the mainnet and the performance on the mainnet may be different.
Other popular dApps on the Optimism network, such as Synthetix and Odos, have also seen a decline in activity. According to dApp radar, the number of unique active wallets on Synthetix decreased by 16.85%, and for Odos, unique active wallets decreased by 37.39% over the same period. This drop in activity could be an indication of a shift in user preferences or a lack of new users joining the network.
Is your wallet green? Check out the Optimism Profit Calculator
However, the state of the Optimism token remained healthy.
HODLrs remain loyal
According to Santiment, the speed of the OP token has decreased along with the MVRV ratio and the long/short difference. This indicated that the frequency with which OP was held had decreased.
The growing MVRV ratio suggested that most of the OP token holders were profitable, while the increasing long/short difference implied that most of the addresses holding the token were long-term holders.
Source: Sentiment
Despite rising prices, long-term holders were less likely to sell their holdings. Meanwhile, OP was trading at $2.27 at the time of writing and the price was up 13.30% in the past 24 hours.
While there is some concern about the declining number of transactions and deteriorating performance on the testnet, the growth in TVL suggests a reason to be optimistic about Optimism’s future.
Finally, it should not be forgotten that the new DEX on Optimism, Velodrome, can make an important contribution to the growing ecosystem.
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