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Ethereum L2 solution ‘Optimism’ reaches 300% in only one month


Optimism has gained an increase in an adoption rate of 300% after the Merge  upgrade triggers Ethereum’s “Rollup-Centric Roadmap.”

Optimism price has been surging since the beginning of July because of its relationship with Ethereum.  The OP’s price rallied by a factor of nearly 300% in just a little over a month, reaching $2.31. This is its second highest level as of August 4th. The coin received bullish momentum from Ethereum’s Merge which is scheduled for September.

Optimism is an Etyhereum rollup solution, meaning that its layer-2 solution handles a set of Ethereum’s verifications off-chain which helps scalability on the main Ethereum blockchain. 

Optimism may be positively affected by the Merge because of Ethereum’s “Rollup-Centric Roadmap,” putting scalability in the layer-2 roll ups via “danksharding.” The mainnet 

“Currently, with the combined rollup and Ethereum architecture, the current Ethereum-only transaction throughput of 15–45 TPS could scale to as much as 1,000–4,000 TPS,” noted Ally Zach, a researcher at Messari

“The introduction of shards has expanded the data storage capacity for rollups to increase this throughput to [the] north of 100,000 TPS.”

OPs technical metrics indicate that a rally may exhaust in the near future. The rising price coincides with  falling RSI, possibly marking a bearish divergence. The attempt breakout it has reached at $2.31 has faced a great deal of struggle since July 20th, with a drawdown of 15% 

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