- OP flipped ARB in market cap as its price soared.
- The network growth of OP continued to decline, indicating waning interest from new addresses.
In the beginning of 2023, Arbitrum [ARB] was the market leader in the layer-2 sector. Both the protocol and the token were leading in every regard. However, things have drastically changed as Optimism [OP] recently snuck into the lead in this race.
Is your portfolio green? Check out the OP Profit Calculator
On 11 September, Optimism surpassed Arbitrum in terms of market cap. Moreover, over the last 24 hours, the price of OP grew by 7%.
— Pat_Kras (@Solofunk30) September 11, 2023
Looking at the hourly chart of OP showed that its price was far away from its monthly highs. After 8 August, the price of OP continued to decline. It exhibited multiple lower lows and lower highs, signaling a bearish trend.
It remains to be seen whether the price movement of OP will be positive enough for the token to establish a positive bullish trend. Notably, indicators for the OP token were pointing north at the time of writing.
Moreover, the token’s RSI was at 63.61, which suggested that there was still bullish momentum for the token at press time. The CMF was in the green as well, which implied that the money flow was favoring the buyers.
Despite the recent positive momentum, OP’s network growth had declined at press time. This indicated that new addresses were not showing much interest in the token, and the surge in growth could be attributed to old holders accumulating.
Realistic or not, here’s OP’s market cap in BTC’s terms
The MVRV ratio of OP remained negative despite the spike in price, suggesting that most holders were still not profitable at the time of writing. This implied that the OP token would not be subjected to much sell pressure in the future.
Coming to the state of the protocol, it was seen that Optimism could improve its reach in the DeFi sector. A recent proposal from MetaSwap, if approved, could add Hedge Swap capabilities for OP holders in the future.