Ethereum (ETH) inventor Vitalik Buterin is one of the most recognizable figures in the cryptocurrency space. Therefore, what the famous name says makes an impact in the field. In this article, we will talk about an altcoin that Buterin praised in the past months, but is now rallying. Here are the details…
Vitalik Buterin praised Optimism
Ethereum (ETH/USD) layer 2 scaling solution Optimism (OP) has seen a massive two-day rally. According to the data, the OP was trading at $0.77 on July 27. The next day, on July 28, it rose to a six-month high of $1.77. At the time of writing, the token is showing a 50 percent increase in the last 24 hours. Its current price stands at $1.61. The token’s massive rally led to $11 million liquidation in the last day, of which $8 million was short positions, according to data from CoinGlass.
1-week OP chart. Source: CoinMarketCapTotal value locked in the project (TVL) has also seen a significant increase over the past few weeks. Total TVL rose 11.06 percent overnight to hit an all-time high of $550 million on Friday, according to data from DeFi Llama. As we reported on Kriptokoin.com, in June, Optimism revealed that a hacker stole $16 million worth of tokens in May. The hacker was later observed sending 1 million OP tokens worth $874,000 to Ethereum creator Vitalik Buterin.
Details about Optimism
Earlier this year, Buterin praised Optimism for adding a non-management token to its ecosystem and using the OP as the main token for the network to pay transaction fees. “Optimism clearly has goals other than ‘raising the OP’ and the only way to do that in the long run is by clearly representing the interests of non-token holders,” Buterin said at the time. Optimism is managed by the Optimism Foundation, a non-profit organization dedicated to growing the Optimism ecosystem. Similar to Ethereum, Optimism aims to be a completely decentralized public good that is not profit driven.
Optimism says it’s funded entirely by donations. It is committed to producing infrastructure that supports the growth and sustainability of public goods. Optimism targets the minimum number of moving parts when creating a second layer solution for Ethereum. In practice, this means using proven Ethereum code and infrastructure whenever possible. Optimism therefore aims to keep its code as simple as possible and to work directly with existing codebases. The ecosystem further emphasizes pragmatism. It is driven by the real-world needs and constraints of its own team and users interested in the ecosystem.
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