Is it possible that the Optimism’s OP Stack is poised to make a significant impact in the Layer 2 arena? The last year has seen a remarkable rise in competition within the Layer 2 space. Arbitrum’s supremacy at the start of 2023 had many questioning the future viability of Optimism’s OP. The skepticism surrounding Optimism’s potential grew as Arbitrum’s dominance became more evident.
Optimism’s OP Stack: A Game Changer?
Despite these doubts, Optimism’s OP Stack might be the factor that gives the protocol an edge in this competitive sector. Recent data has unveiled an impressive lineup of projects and companies, including big players like Coinbase, Binance, Debank, Celo, and Worldcoin, who are actively building their own Layer 2 solutions with Optimism’s OP Stack.
Coinbase’s Base network has already generated a staggering $1.5 million in revenue within a single month. If this revenue remains constant, the annual revenue estimate could reach a whopping $45 million, based on data from The Defi Investor. An important chunk of this revenue, 10% to be exact, would go towards the Optimism treasury, accumulating to a substantial $4.5 million.
Financial Benefits for Optimism
As Base’s growth trajectory continues, it is possible that this amount could exceed $20 million during the upcoming bullish market cycle. This projected $20 million revenue stream, exclusively credited to Optimism courtesy of Base, is significant. Furthermore, it is worth noting that every additional Layer 2 entity integrating Optimism’s Superchain will also contribute a portion of its earnings to the OP Treasury. This highlights the wider financial gains that Optimism could reap as its ecosystem expands and diversifies.
According to Token Terminal’s data, the total revenue generated by Optimism has reached $4.8 million. Despite a slight decline of 1.8% in daily active users, the protocol’s revenue continues to grow.
Performance of the OP Token
However, the same level of growth was not seen in the OP token. In the past few days, the price of the OP token has significantly dropped, trading at $1.524 at the time of writing. This price decline was accompanied by a decrease in network growth, suggesting that new addresses are beginning to lose interest in the token.
This dwindling interest from new addresses could be one of the factors behind OP’s recent price correction. Despite this, the potential of Optimism’s OP Stack remains promising.
For those interested in monitoring the performance of Optimism’s OP Stack, the cryptoview.io application offers a comprehensive platform for tracking cryptocurrency trends.
