There have been new developments for Optimism, the Ethereum layer-2 Blockchain solution, and for the altcoin project OP. The OP had a short slump due to a misunderstanding under the influence of various rumors. Here are the details…
Optimism’s altcoin project drops hard
The OP token of Optimsm, the ETH L2 solution, has seen a massive transfer. Thus, this gave rise to rumors that his multi-signature wallet had been hacked. Then it crashed briefly on Wednesday. Optimism’s core team insists it’s not a hack. Still, the OP token dropped 10 percent in a matter of minutes in the evening. According to the data, the cryptocurrency fell from $1.49 to $1.29. At the time of writing, it’s changing hands at $1.35, down 9.4 percent.
On the Discord messaging platform, the team announced that funds movements are pre-scheduled for Coinbase Custody-related transfers to investor wallets. According to Etherscan data, the value of the transferred funds is approximately 450 million dollars. The hasty response sent the token’s price action in the opposite direction. Since then, it has rebounded somewhat. After the flash crash, Optimism said it “expects” some “confusion” over the unannounced funds transfer. “We will be announcing large, planned transfers ahead of time to avoid further confusion in the future,” he also wrote on Twitter.
We're seeing some confusion about recent transfers of OP out of a multisig. This is expected—today we executed a series of planned standard transfers to the Coinbase Custody wallets of various investors in OP Labs PBC.
— Optimism (@Optimism) August 17, 2022
Optimism TVL increased
Meanwhile, Optimism has seen positive moves recently with a new development towards Ethereum’s Merge. As we reported as Kriptokoin.com, the total value (TVL) locked in Optimism increased by 284 percent last month. Users who lend and borrow assets on Aave through Optimism’s layer 2 chain make up the vast majority of TVL. The increase in TVL seems to have occurred with the expectation of the Goerli testnet. As it is known, Ethereum performed the Merge, which will mark the transition from PoW to PoS, on the Goerli testnet recently. In addition, the estimated launch date, which was September 19, was moved to September 15.
Optimism, an Ethereum layer-2 Blockchain with rollups or off-chain computations, aims to expand the ecosystem and accelerate transactions. In Optimism, transactions are entered and completed in Ethereum. The project hosts 35 protocols, including automated market maker Velodrome, decentralized exchange Uniswap, and derivatives exchange Synthetix. The current capacity of 30 transactions per second of the Ethereum Blockchain is insufficient to manage the massive amount of user trade orders (including cancellations) on exchanges. However, according to some analysts, the network can scale to 100,000 transactions per second with the Merge upgrade, and layer-2 solutions can further enhance this capacity.
Optimism blocks are created and executed in layer-2, while user actions are grouped. It is sent to Ethereum layer-1. At Layer-2, transactions are accepted or rejected instantly without mempool, which ensures a fast user experience. In line with the TVL development, the project’s token also increased with its launch.
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