The number of transactions on Optimism reached a record high. The fees generated increased along with the price of the token.

Despite the volatile market conditions, the number of trades on the L2 platform is optimistic [OP] hit a new all-time high and sat at 590.67k at the time of writing, according to the image below from Dune Analytics.

This development indicated that an increasing number of users were using L2s, such as Optimism, to transact.

Source: Dune analysis

Read Optimism [OP] Price prediction 2023-2024

Reaching new highs during market lows

One reason for the growing number of transactions would be the amount of ETH users saved by using Optimism.

After September, the number of transactions on Optimism was cheaper than any Layer 1 cryptocurrency. If this trend continues, more users will be inclined to use Optimism for their trades.

Now, due to the increasing number of transactions on the Optimism network, the fees collected by the network have also increased.

Fees collected per day increased by 62.6% over the last seven days Token terminal. At the time of writing, the amount of fees generated by Optimism was $67.9k.

Source: Dune analysis

HODLers’ state of optimism

This growth in optimism also positively impacted the network’s on-chain metrics. Remarkable, OP’s MVRV ratio soared. This implied that if most holders sold their tokens, they would do so for a profit. This can create selling pressure on holders.

However, the growing long/short indicator suggested that most of the token holders who would benefit from the sale of their tokens would be long-term HODLers of the OP token. In that case, it would be very unlikely that long-term investors of the OP token would exit their positions so quickly.

Source: Sentiment

While long-term holders supporting OP may provide relief to token holders, the declining activity in the chain may be alarming.

The daily active addresses for OP have fallen sharply in recent days. Coupled with that, there was a decrease in speed over the same period. This implied that the frequency with which OP was transmitted had decreased.

Another indicator that provided a cynical outlook for Optimism would be a dip in network growth, suggesting a decline in the number of new addresses transferring OP tokens for the first time.

Source: Sentiment

With multiple factors at play, it is difficult to determine which direction Optimism is heading.

That said, at the time of writing, OP was trading at $1.07. According to CoinMarketCap, the price is down 5.44% in the last 24 hours.

This post Optimism trades hit a new high, but what does this mean for OP

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