Optimism (OP) is a layer-two blockchain based on the Ethereum blockchain ecosystem. This Optimism price prediction offers insights into the project, price movement and possible price details in the year 2022 to the year 203.
Optimism makes application with the security features of the Ethereum mainnet to extend the Ethereum ecosystem using Optimistic rollups. In other words, transactions are logged on Optimism in a rather unreliable manner but are eventually safeguarded on Ethereum.
With more than $300 million in total value locked (TVL), Optimism is one of the most significant scaling solutions for Ethereum. It is home to thirty-five protocols, the biggest of which are Velodrome (VELO), an AMM, Uniswap (UNI), a DEX, and Synthetix (SNX), a derivatives exchange. By connecting the chain to their Metamask and bridging coins like ETH to the L2, users can start their trip on Optimism.
Optimism settles Ethereum transactions on another blockchain quickly and cheaply using cutting-edge data compression techniques. The secret ingredient in Optimism’s scaling mechanism is right there in the name, the optimistic rollups, a method combining numerous transactions into a single one. Transactions are settled on a different blockchain and are then fed receipts back into the main Ethereum network.
Rollups that “optimistically” assume that every transaction in the rollup is genuine are referred to as optimistic rollups. This saves time because specific transactions don’t need to be presented with concrete evidence of their legitimacy. If the rollup’s validators think the data is false, they have a week to query the entire rollup.
According to a dashboard on Dune Analytics, Optimism reduces Ethereum transaction fees, or “gas fees,” by 129 times. DeFi platforms like Synthetix and Uniswap support it. As of March 2022, according to Dune Analytics, Optimism secures around $740 million in on-chain value, down from just over $1 billion in January.
In June 2019, Optimism was unveiled, and in October, a testnet was made available. The alpha mainnet didn’t debut until January 2021, and Optimism didn’t release a version of the alpha mainnet that was compatible with the Ethereum Virtual Machine until October of that same year. In December 2021, an open mainnet began operation.
Optimism (OP) Fundamental Analysis
The best way to understand Optimism is as one of several approaches taken to address Ethereum’s state-bloat issue. The Ethereum network is about to burst, but scaling solutions like Optimism allow the decentralized banking sector to expand and continue to be accessible to individuals who cannot afford its high transaction fees until the main blockchain is improved.
Optimistic rollups are used by other scaling solutions outside the protocol. Boba Network and Arbitrum use the same method to reduce fees for Ethereum users. Another common sort of rollup is the zero-knowledge rollup, which is utilized by Loopring, Immutable X, and ZKSync. Similar to Arbitrum, Optimism lacks a native coin to cover gas costs. Like Arbitrum, it makes use of ETH. Moreover, Optimism is in beta and is not yet completely decentralized, like Arbitrum.
Users have to add their ETH or ERC-20 tokens to the Optimism token bridge in order to utilize the platform. This makes the use of Optimism possible to transact on ethereum. After that, one can transfer his tokens back to the Ethereum mainnet. The tokens have to be deposited through the Optimism Gateway in order to be accepted. Users can use a Web3 wallet, such as MetaMask, to connect to the Gateway.
The average deposit time is twenty minutes, and MetaMask estimated that it would cost $18 to send one Ethereum. It would take a week and $52.72 to withdraw the money, Optimism said. This delay is a characteristic of Optimism’s optimistic rollup’s week-long challenge time. You can use the money you deposit on Optimism in compatible decentralized applications.
A sequencer generates new blocks until a user submits their transaction directly to the Canonical Transaction Chain. This sequencer immediately validates legitimate transactions before creating and executing blocks on Optimism’s layer two blockchains, which is a blockchain built on top of an L1 blockchain, Ethereum. These blocks are the batches of Ethereum transactions known as “rollups.” The sequencer further compresses this data to make the transaction smaller and cheaper before returning transaction data to Ethereum.
Layer two software for Optimism is created to closely resemble Ethereum’s code. You can move any ERC-20 asset that complies with the general Ethereum token standard between the two networks due to the similarity of Ethereum and Optimism.
How does Optimism work?
The Ethereum Layer 2 blockchain called Optimism employs rollups to save expenses and increase scalability. Rollups involve “rolling up” transaction data using smart contracts and processing it across from the Ethereum mainnet. Then, sequencers return to Ethereum batches of highly compressed transaction data.
EIP-4844 will drastically decrease rollup fees, enabling Ethereum to scale without sacrificing decentralization.
— OP Labs (@OPLabsPBC) July 29, 2022
Rollup transactions can be verified using either optimistic or zero-knowledge methods (ZK). Optimistic rollups make the assumption that all transactions are genuine, whereas ZK rollups produce cryptographic proofs that demonstrate the legitimacy of transactions. Optimistic rollups have a tough period rather than a ZK rollup’s higher expense to ensure accuracy.
Optimism employs optimistic rollups, as the name would imply. A week of waiting period applies to withdrawals from Optimism Bridge because the network has a one-week challenge period for fraud proofs. The lengthy challenge time boosts the blockchain’s security, but it can make a hurdle for some users and use cases.
Many of the same tools that are used by the Ethereum blockchain are also used by Optimism, including a modified version of GETH for its Layer 2 node and a Solidity compiler. As a result, users can send any ERC-20 asset between networks thanks to the blockchain, which ensures compatibility with a wide variety of Ethereum dApps and reduces any discrepancies.
Transfer of Ethereum between the Ethereum mainnet and the Optimism sidechain is made simple through the Optimism Bridge. To transfer ETH or other ERC-20 tokens, for instance, the user would need to connect with MetaMask or another wallet, enter the desired amount, evaluate the gas costs and transaction timeframes, and then click a button.
To reduce costs and transaction times, users can also employ third-party bridges. However, users’ choices might be influenced by token restrictions or other considerations. For example, the Hop Exchange offers quick transfers between Optimism and the Ethereum mainnet, but it only accepts a few ERC-20 tokens, making it not appropriate for everyone.
The vision that Optimism seeks to establish will produce benefits for three groups of people, that are:
- By effectively redeploying sequencer revenue, token holders gain value.
- Retroactive public goods are funding benefits contributors and constructors.
- Ongoing airdrops and project incentives benefit users and community members.
Revenue from the sale of OP block space is dispersed to public goods, increasing demand for block space. Because of this, Optimism’s token distribution appears as 25% tokens for ecosystem money (divided into governance fund, partner fund, seed fund, and unallocated funds).
Users’ airdrops and core contributors each received 19% of the tokens. Funding for Public Goods Retroactively got 20% tokens, while 17% were reserved for investors.
At a 2% annual inflation rate, there were 4.3 billion OP tokens in the initial supply. The Foundation will be given access to 30% of the initial token supply in the first year for distribution. Token owners will vote to decide the Foundation’s yearly OP distribution budget after the first year. The Foundation anticipates seeking the annual allocations. In the second, third, and four years, 15%, 10%, and 4% of the initial supply would be circulated.
Although Optimism’s mainnet went live in December 2021, the OP token has not been available for a long time yet. The OP token was made available as an airdrop on May 31, 2022. This airdrop was first mentioned in this blog post in April 2022.
Optimism has shown that airdrop is just the first step in a long series. However, the team agreed not to reveal any additional conditions or dates for the upcoming airdrops. This is because it encourages users to start using the network as soon as possible and is a well-known strategy in the crypto sphere.
Optimism Future Plans
The roadmap of Optimism comprises improvements to the Optimism protocol, including a decentralized sequencer, next-generation fault-proof rollups, and sharded rollups. They declared that they would soon be deploying arbitrary contracts on a mainnet that was completely available to the public. Since gas prices had never been higher, they were under intense pressure to connect to the mainnet as soon as possible.
Since making the first announcement, they have gotten masses of community input. Most initiatives were caught off guard by the accelerated schedule and did not give their community enough time to get ready for launch. They are overly excited to provide everyone with the speed and financial benefits that Synthetix users have been experiencing (around $10.1 million in fees were saved across 103,775 transactions).
They have not planned much about their partners’ schedules and demands since they are yet too busy with their own needs. It is risky to hurry into L2 without sufficient community planning. There is a very real risk of well-liked dapps being forked and released by adversaries with the purpose of scamming consumers, as they have observed on other networks.
That is why they have just disclosed that they would delay the launch of the official mainnet in favor of a better-planned community launch. They want to give time to integration, audit, and testing for fundamental projects, infrastructure providers, block explorers, wallets, and token bridges.
The most significant component of Optimistic Ethereum is the community, and it is crucial to pay attention to their input options. They have spent two weeks overhauling their engineering procedures. This was done to make it simpler for ecosystem participants to contribute, integrate, and be visible.
They have also changed from providing significant updates only seldom to providing more frequent updates on our Discord. These previous few months have taught them a lot, and hence they are changing the way they work together as a team. This is because demand and interest in their work have increased beyond their dreams.
While they complete the integrations with at least a dozen more early adopter applications, they will maintain the deployer whitelist on our current mainnet for a little while longer. These infrastructure-building projects are essential to the success of programs that come after them, and the size of the whitelist may change as more data is gathered.
For instance, they did not initially take into account the value of multi-sig, which enables developers to securely manage keys for their projects. These integrations are currently being worked on, and they will be rolled out when they are finished. The whitelist would just restrict the person deploying, not the one using it.
The community has expanded tremendously. During the Scaling Ethereum hackathon, the testnet will be made accessible to hackers in an effort to maintain momentum. They will start integrating the whitelisted projects in parallel from now til then so they can start relieving the gas load before the public launch.
Optimism (OP) Price Analysis
The Optimism price on July 30, 2022, is $1.75. It has a trading volume of about $720 million. Its market cap is $410 million, and CoinMarketCap currently ranks it as number 95. About 235 million OP coins are in circulation. It is among the top hundred cryptocurrencies and may have sustainable value.
Optimism Price Prediction –Crypto Academy
We have predicted the OP future prices keeping in mind the future market and project developments as well as the project roadmap given for upcoming years.
Optimism Price Prediction 2022
Our price prediction for 2022 says that the price of Optimism can reach a minimum level of $1.5. The OP price can reach a maximum level of $2.8 due to its sharded and fault-proof rollups, with an average trading price of $2.2.
Optimism Price Prediction 2023
The price of Optimism is predicted to reach a minimum level of $2 in 2023. The Optimism price can reach a maximum level of $3.3 using its decentralized sequencer and deployment of arbitrary contracts on a public mainnet, with an average price of $2.88 throughout 2023.
Optimism Price Forecast for 2024
For the year 2024, we predict the price of Optimism to reach a minimum level of $2.5. The OP price can reach a maximum level of $4.2 with the speed and financial benefits similar to Synthetix, with an average trading price of $3.4.
Optimism Price Forecast for 2025
The price of Optimism is likely to reach a minimum level of $3 in 2025. The OP price can hit a maximum level of $5.5 by proper integration, audit, and testing of miannet, with an average price of $4.7 throughout 2025.
Optimism Price Prediction 2026
We forecast the Optimism price to reach the lowest possible level of $4 in 2026. Our findings say that the OP price might reach a maximum possible level of $7 through well-developed fundamental projects and infrastructure providers, with an average possible price of $5.5.
Optimism Price Prediction 2027
From our deep technical analysis of the historical price data of OP, we expect the price of Optimism to be around a minimum value of $5 in 2027. The Optimism price value can reach a maximum of $8 through its advanced block explorers, wallets, and token bridges, with an average trading value of $6.5.
Optimism (OP) Price Prediction 2028
The price of Optimism is anticipated to reach a minimum value of $6 in 2028. The Optimism price may reach a maximum value of $10 by integrating with more dozen early adopter applications, with the average trading price of $8 throughout 2028.
Optimism Price Prediction 2029
Our forecast and technical analysis for 2029 indicate that the price of Optimism can reach a minimum price value of $8. The OP price can reach a maximum price value of $12 by holding several airdrops encouraging more users, with an average value of $10.
Optimism (OP) Price Prediction 2030
We predict the price of Optimism to reach a minimum value of $10 in 2030. The Optimism price can reach a maximum value of $16 as rollups would save expenses and enhance scalability, with an average trading price of $13 throughout 2030.
Optimism Price Prediction – Market Overview
Many websites and platforms have given related to the price prediction of Optimism in the upcoming years. Most of them are optimistic about its future. Here are the predictions are given by them.
PricePrediction.net analysts predict the OP price to reach the maximum level of $1.50 by the end of 2022. An average price level can be 1.32 by the end of 2022. Their estimation for the five-year indicates the coin price to easily reach the level of $6.18. Their special experts and business analysts predict the price to increase with outstanding potential. This will make the highest price of Optimism to be $44.47 by 2030.
Tech News Leader
Tech News Leader analysts predict the Optimism price to go as high as $1.60 in a year, while in five years, the OP token might worth $5.16. In ten years, there is a higher chance of the price of Optimism to increase to $32.78. In eight to ten years, the value of an Optimism token to surpass the lowest price of $31.66 and the highest price of $38.30.
Digital Coin Price
Per Digital Coin Price analysts, the minimum Optimism price can be $2.22, and the maximum price can be $8.85 in the future. In a year from now, the price of one OP can be approximately equal to $2.22 to $2.54. The price of Optimism can be $2.77 and $2.93 after three and four years. After five, six, and seven years from now, the price can be $4.23, $5.63, and $6.92.
Wallet Investor analysts do not consider Optimism to be a good investment. They consider it valuable to be at the maximum price of $0.111 in 2022. By the end of 2023 and 2024, the prices can be at the highest level of $0.0361 and $0.0373. The prices at the maximum level by the end of 2025 and 2026 can be around $0.119. Five years from now, the highest possible price can be $0.168.
How to Buy OP?
On numerous significant exchanges, including Binance, Kucoin, Coinbase, Houbi Global, and Gate.io, OP is listed and is available for trading. However, the Binance exchange platform is still the most commonly used exchange to attain tokens.
Step 1: Create an Account.
Opening (or authenticating an existing) an account on a cryptocurrency trading platform that accepts the OP token is the first step toward buying the token. The most popular trading platform now with the token is Binance. It is known for its safety, simplicity, and affordability.
To create an account on the exchange, you must first register with an email address and password. To authenticate your account, you might need to enter some basic personal information.
Step 2: Select a Payment Method.
After making the account, you can fund it by linking your bank account or credit card. It supports funding the account using bank deposits, Visa, or MasterCards. Options of peer-to-peer trading and third-party payment channels are also available.
Step 3: Make your purchase.
Next, you have to search on the trading platform to locate OP once your account has been funded. After that, confirm the amount of OP you want to buy, and then complete the deal within a minute. This is because the trading price gets refreshed after each minute on the platform.
After confirming the trade, your OP tokens would be kept in your account and would stay available after that. However, it is more secure, convenient, and simple to store any cryptocurrency on a crypto wallet, which provides users with exclusive control over their money.
Frequently Asked Questions (FAQs?
Is OP a Good Investment?
OP is a good investment because it saves users’ expenses and increases scalability.
Can OP Reach $10?
The Optimism price can reach a value of $10 by integrating several early adopter applications.
Where to Buy OP?
You can buy OP on Binance, Kucoin, Coinbase, Houbi Global, and Gate.io.
- Optimism (OP) is a layer-two blockchain working on the basis of Ethereum.
- Optimism makes application of the security features of the Ethereum mainnet to extend the Ethereum ecosystem using Optimistic rollups.
- Optimism settles Ethereum transactions on another blockchain quickly and cheaply using cutting-edge data compression techniques.
- Rollups that “optimistically” assume that every transaction in the rollup is genuine are referred to as optimistic rollups.
- Rollups save time because specific transactions don’t need to be presented with concrete evidence of their legitimacy.
- OP is a good investment because it saves users’ expenses and increases scalability.
- The OP price can reach a maximum level of $2.8 in 2022.
- The OP price can hit a maximum level of $5.5 in 2025.
- The Optimism price can reach a value of $10 by 2028 by integrating several early adopter applications.
- The Optimism price can reach a maximum value of $16 in 2030.
- You can buy OP on Binance, Kucoin, Coinbase, Houbi Global, and Gate.io.
The post Optimism Price Prediction 2022 and Beyond – Can OP reach $10? appeared first on Crypto Academy.