Optimism is one of the most popular layer-scaling solutions in the market. With its price rally and advanced network fundamentals, OP has been in the limelight lately. Although the crypto market has started showing signs of a bullish rally since the beginning of 2023, Optimism price prediction shows a slight decline in the token’s rally. Investors are curious to know whether OP can push above $10 in the coming few days. Let’s see.
Why Is Optimism Falling Down?
The price of #Bitcoin has dropped over 5% to $22000 due to uncertainty about #SilvergateCapital 📉— Elite Crypto (@TheEliteCrypto) March 3, 2023
This has wiped $22B from #BTC MCap
Experts believe it is linked to recent #Silvergate Bank controversy & US regulators efforts to restrict ties between bank & #crypto firms 🎢 pic.twitter.com/1W6tiA7CN8
OP experienced a short bullish run in early 2022, hitting an all-time high of $4.57 in May. But the token fell significantly in the aftermath of the collapse of the FTX exchange. Its price swung between $1 and $0.8 ranges throughout the remaining week before beginning a steady rise in December. The main catalyst for the spike was its announcement to deploy the AttestationStation, an attestation smart contract that aims to offer “a permissionless, accessible data source for builders creating reputation-based applications.”
According to price predictions, OP has failed to break its previous long decline. Within a week, the crypto has fallen over 20%, from $3.2 to $2.55, as of writing.
Along with OP, major cryptos like Bitcoin and Ethereum have also plunged drastically below their $23,000 and $1,600 marks. There are multiple reasons for this downfall, starting from the release of manufacturing data and uncertainties concerning the accessibility of banking services for crypto companies, especially in the US. Additionally, the fallout of Silvergate, a crypto-friendly US bank, has also added heat to the downfall.
The Silvergate Uncertainty Increases Market Volatility And Weakens Crypto
The value of the entire crypto market has significantly plunged in the middle of looming uncertainties around the crypto-friendly bank Silvergate. The bank recently announced that it is currently assessing its ability to continue operations. This has caused a stir in the entire crypto sphere, with the overall market capitalization of cryptocurrencies decreasing by almost 4.45% to $1.02 trillion. This uncertainty has largely contributed to the negative sentiment in the entire crypto sphere. Analysts are still concerned as to whether Silvergate would be able to tackle these wild storms.
However, on the positive side, the industry remains strong and strengthens itself every time a bearish event like this happens. Although prices plunge, bringing negative sentiment, it remains for a shorter term.
Silvergate Capital (SI -57.69%), the crypto bank that's been under financial pressure for months. In a filing with the (SEC), the company said it is evaluating "its ability to continue as a going concern," which is often a precursor to filing for bankruptcy. $AMC $APE #AMC #APE pic.twitter.com/39MNsTNGrK— Frank's Place (@StockSenseFrank) March 2, 2023
Optimism Price Analysis
OP is trading at $2.55 at the time of writing and has a 24-hour trading volume of $199,627,630. The coin has experienced a major plunge of over 4.5% over the previous 24 hours. The current CoinMarketCap ranking of OP is #62, boasting a market cap of $800,116,934. OP has a total supply of 4,294,967,296 coins and a circulating supply of 314,844,141 coins.
Optimism Price Surges As Coinbase Launches L2 Network Using OP Tech
Optimism is one of the most prominent scaling alternatives for Ethereum, with almost $300 million in TVL. Regardless of the general market condition and price drop, investors are still curious to know if OP can push above $10 in the coming years.
Optimism experienced a significant push recently, and the main catalyst for this price rise was the announcement made by the largest regulated US crypto exchange, Coinbase. The exchange has plans to launch its layer-two network for Ethereum leveraging the Optimism-based technology. The price of OP has skyrocketed by almost 11%, adding to the project’s recovering price in response to this announcement.
This move is to attract the attention of millions of additional cryptocurrency users in the coming years. Coinbase has joined as a core developer with Optimism, working on the open-source OP Stack, a developer toolkit of the Optimism network. Additionally, Coinbase also launched the Base testnet recently, aiming to provide speed and secure access to tier 2 networks such as the Optimism network.
This development is particularly positive news for Optimism coin, as it could help limit further losses in the coming days. The launch of Base indicates a potential increase in demand for the network, which could boost the value of OP.
Is Optimism Still A Buy In 2023?
Despite the recent price drops, Optimism is still one of the best altcoins in the market. One key reason is its unique feature that makes OP distinct from other Layer 2s and sidechains. It uses the Optimism Virtual Machine (OVM) mechanism to deploy dApps. It allows Ethereum dApps to load seamlessly into the network with little to no changes in the overall code. This way, Optimism increases efficiency, as the OVM method has a higher processing capacity compared to the EVM because of its design differences.
Moreover, Optimism is now home to over 35 protocols and includes some notable names like the Velodrome (VELO), an AMM, Uniswap (UNI), a DEX, and Synthetix (SNX). The team has already integrated a range of NFT, DeFi, on-ramping, and portfolio-tracking dApps into the network, which could push the price of OP to new levels.
Although the crypto market started 2023 on a positive note, the global market is experiencing a decline, affecting the prices of cryptos like Optimism. It is difficult to assertively answer if OP can push above $10 anytime soon. But, given its current developments and network growth, Optimism has plenty of room for growth.