Optimism is a Level 2 scaling solution for the Ethereum blockchain that aims to provide faster and cheaper transactions while maintaining the security and decentralization of the Ethereum network. To achieve this, a technique called optimistic rollups is devised, which allows off-chain transactions to be aggregated and then sent to the Ethereum blockchain in a single batch transaction. This reduces the amount of data that needs to be processed on the Ethereum blockchain, leading to lower transaction fees and faster processing times.
In addition to this, use cases for Optimism include support for smart contracts and allow developers to build and deploy decentralized applications (dApps) on the Ethereum blockchain.
The Optimism DeFi TVL stands at $964 million, in 6th place, a jump of 38% in the month, one of the top performers in all the big chains.
Avalanche that has a TVL lower than Optimism is rated 6 times higher.
Optimism Tokens
Optimism’s native token, also called Optimism (OP), is used to fund third-party development proposals and integrations through the DAO Optimism Collective. POs can participate in the vote on the future of the network.
- Reduce gas fees on Ethereum transactions and improve transaction speed.
- Interact with Dapps built on the Optimism network
Overall, Optimism is catching up compared to other layer-2 Ethereum blockchains (such as Matic). That said, $OP is a good trading asset and a moderate investment asset.
Can Optimism reach $100?
Optimism will have to increase 34-fold to reach $100. At $100, $OP’s market cap will be around $23.1 billion. If Optimism were to increase at a rate of 25% each year, it would take 16 years to reach $100.
Combine all factors
- Investment case: moderate
- Growth required: moderate
- Market capitalization requirements: reasonable
Overall, there’s a good chance the Optimism will hit $100. A Burn program targeting 25-50% of tokens will make this task much easier.
Optimism Price Forecast 2023, 2025 and 2030
- Optimism Price Prediction 2023 is $5.5
- Optimism Token Price Prediction 2025 is $10.4
- Optimism Price Prediction 2030 is $49.0
Optimism Price Prediction Reddit Update
- Users are excited about Optimism’s potential to reduce gas tariffs and improve scalability
- The fact that Optimism is receiving a portion of the sequencer commissions from BASE is also seen as a positive sign for the project.
- Some users are concerned about the different competing L2 solutions.
- There are concerns about the complexity of achieving full interoperability between L2 networks
- Some users express skepticism about the long-term tokenomics of the Optimism token and its potential use cases beyond short-term hype.