Posted:
- OP changed ARB to market cap when the price soared.
- OP’s network growth continued to decline, indicating that interest from new addresses is waning.
Early 2023, Arbitrum [ARB] was the market leader in the layer 2 sector. Both the protocol and the token were leading in every respect. However, things have changed drastically as optimism [OP] recently took the lead in this race.
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Making progress
On September 11, optimism surpassed Arbitrum in terms of market capitalization. Moreover, OP’s price has increased by 7% in the last 24 hours.
$OP just turned around $ARB for the first time in market capitalization. pic.twitter.com/lj0IRS9rAk
— Pat_Kras (@Solofunk30) September 11, 2023
Looking at OP’s hourly chart showed that the price was far from its monthly highs. After August 8, the price of OP continued to decline. It showed multiple lower lows and lower highs, indicating a bearish trend.
It remains to be seen whether OP’s price movement will be positive enough for the token to establish a positive bullish trend. Notably, the indicators for the OP token were pointing north at the time of writing.
Furthermore, the token’s RSI stood at 63.61, which suggested that there was still bullish momentum for the token at the time of writing. The CMF was also in the green, implying that the flow of money was in favor of buyers.
Source: trading view
Further developments
Despite the recent positive momentum, OP’s network growth had slowed at the time of writing. This indicated that new addresses were not showing much interest in the token, and the strong growth could be attributed to old holders piling in.
Realistic or not, here is OP’s market cap in BTC terms
OP’s MVRV ratio remained negative despite the price spike, indicating that most holders were still unprofitable at the time of writing. This implied that the OP token would not be exposed to much selling pressure in the future.
Source: Santiment
As for the status of the protocol, it was seen that optimism could expand its reach in the DeFi sector. A recent one proposal of MetaSwap, if approved, could add Hedge Swap capabilities for OP holders in the future.