Basis: How Optimism’s Game-Changer Can Affect OP Value

Optimism is gearing up for its end mainnet upgrade next week. This upgrade will offer lower protocol and security fees for users on the platform. This has led to an increase in the price of the ecosystem’s governance token, OP, by an albeit modest 3.7% over the past 24 hours.

This price movement comes only after the disappointing performance of the previous month where OP dropped Over 30% in the monthly time frame.

With the promise of low fees with Ethereum-like security for an upcoming upgrade, we could see OP continue its current bull run.

Optimism: Laying the Groundwork for Future Growth

promoted as base mainnet upgrade, It aims to improve efficiency to reduce costs for investors on the platform. According to a recent blog post by Optimism, this should be able to increase protocol and security costs by up to 47%. The upgrade will use channels that will be split again to further optimize data compression.

🚀🌐 Layer2 Network Optimism is getting ready for the Bedrock upgrade soon!

💡💎 Discover how this game-changing update drives scalability, security and efficiency for Optimum, and what it means for the future #ethereum,#optimism $op # layer 2 #EIP1559

– KuCoin (@kucoincom) June 2, 2023

The upgrade also coincides with Ethereum’s Denkun upgrade, which will reduce on-chain costs as a result of dansharding. Danksharding is a process that makes data blobs available for use by Layer 2 protocols such as Optimism. This improvement will make Optimism more attractive to developers.

OP total market cap currently at $970 million on the weekend chart: TradingView.com

is with bedrock upgrade the upcoming OP Stack Mods which are improvements to the OP Stack layer by community members. These modifications can be voted on by the community to become an official part of the OP stack layer.

The upgrade also opens the way for Optimism to incorporate improvements into its fault proof, with an incentive for the community to propose improvements to the system.

At $1.50, how might this affect the OP price?

The current trajectory of the coin puts it on an ideal path towards higher highs in the coming days. At the moment, OP bulls are targeting $1.70 in the medium to long term, with the potential for a move towards the $2 range. If the momentum allows it, investors and traders should continue with their current price movement to take higher profits.

Source: CoinMarketCap

With bitcoin rising at the time of writing, the gains made by OP bulls should be boosted in the medium term. However, investors should be wary of any bearish developments expected in the coming days.

The coin’s current support at $1.3 lacks any support that could drag the OP down to the sub-$1 range. If this happens, OP bulls should be able to tolerate a potential drop to $0.5 support. But the current momentum held by the token is enough for the investors to target higher highs in the coming days.

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