- Optimism protocol could reap advantages from Coinbase’s new product.
- Nevertheless, its token could get impacted negatively.
The much-awaited Coinbase layer 2 resolution might be launching on the Optimism community very quickly. It’s vital to notice that a number of elements are in favor of Coinbase’s new initiative.
The success of Coinbase’s layer 2 resolution may have a optimistic affect on the Optimism protocol, however the identical can’t be stated for the OP token.
Is your portfolio inexperienced? Take a look at the Optimism Revenue Calculator
One of many methods wherein Optimism would profit from Coinbase’s layer 2 protocol can be by the fees generated by Coinbase.
The alternate can be contributing a portion of its charges collected on its community to the Optimism protocol. With the assistance of the charges collected by Coinbase, Optimism can earn extra income.
With one other stream of income added to the Optimism protocol, it may cut back the charges utilized to the customers on its community and assist them save extra of their ETH.
This could make the Optimism community extra engaging to crypto customers and it will assist the layer 2 resolution outperform its opponents similar to Arbitrum.
Supply: Dune Analytics
Utilizing OP is OPtional
Although the Coinbase collaboration could assist enhance the circumstances of the Optimism protocol, it could not have the identical impact on the OP token.
Notably, Coinbase has extra incentive to have USDC because the native token on its protocol, relatively than OP.
It’s because USDC is issued by Centre, a consortium co-founded by each Circle and Coinbase. If USDC does find yourself changing into the native token of Coinbase’s layer 2 resolution, OP could not have the ability to reap the identical rewards because the Optimism protocol.
Supply: Messari
OP’s present state
Nevertheless, in the intervening time, OP noticed lots of progress. In keeping with Santiment’s information, each its costs and quantity continued to rise.
Over the previous month, its worth surged by 24.41% and its quantity elevated from 200 million to 223.1 million.
This spike in costs and quantity was accompanied by a decline in Optimism’s MVRV ratio.
Real looking or not, right here’s OP market cap in BTC’s phrases
A unfavorable MVRV ratio implied that the majority holders wouldn’t make a revenue in the event that they determined to promote their tokens.
Supply: Santiment
At the moment, OP holders may be relaxed, because the long-term results of Coinbase’s protocol on OP are but to be decided.