Research Summary
The report provides a comprehensive analysis of Optimism (OP), a Layer-2 Ethereum scaling protocol, for Q1 2024. It covers key metrics, including daily active addresses, transactions, market capitalization, and revenue. The report also highlights the implementation of EIP-4844, which significantly reduced L1 submission costs, and the growth of the DeFi sector on OP Mainnet.
Key Takeaways
Optimism’s Performance and Growth
- Increased Network Activity: Optimism’s daily active addresses and transactions rose by 23% and 39% respectively in Q1 2024, indicating increased network activity.
- Market Capitalization: Optimism’s circulating market cap increased to $3.7 billion (+11% QoQ), while the fully diluted market cap rose to $15.7 billion (+1% QoQ).
- Revenue Growth: Optimism’s revenue increased to $16 million (+78% QoQ) due to higher network activity and a rise in the average transaction fee.
- Onchain Profit: The onchain profit for OP Mainnet in Q1 2024 was $2 million (+14% QoQ).
- Stablecoin Market Capitalization: OP Mainnet’s stablecoin market capitalization reached $809 million (+32% QoQ), with USDT becoming the dominant stablecoin.
Implementation of EIP-4844
- Cost Reduction: The implementation of EIP-4844 in March 2024 led to a significant reduction in L1 submission costs by over 99%, reducing the average daily cost from $420,000 to $830.
- Impact on Transaction Fees: The implementation of EIP-4844 also led to a significant reduction in the average transaction fee.
DeFi Dominance on OP Mainnet
- Leading Sector: DeFi continues to be the leading sector on OP Mainnet, accounting for 86% of the active addresses in Q1 2024.
- Total Value Locked (TVL): OP Mainnet’s TVL increased by 18% QoQ, concluding the quarter at $1.2 billion.
Optimism’s Future Plans
- RetroPGF Roadmap: Optimism released an updated roadmap for RetroPGF, with four rounds planned for the year, each with a specific focus.
- Superchain Development: Optimism aims to develop a Superchain, a unified network of OP Chains built using the OP Stack, to bring seamless interoperability between OP Chains.
Actionable Insights
- Monitor the Impact of EIP-4844: The implementation of EIP-4844 has significantly reduced L1 submission costs and transaction fees. Stakeholders should monitor its long-term impact on Optimism’s financial performance and user adoption.
- Assess the Growth of DeFi on OP Mainnet: With DeFi dominating the active addresses on OP Mainnet, stakeholders should assess the growth and potential of DeFi applications on the platform.
- Understand the Potential of the Superchain: Optimism’s vision for a Superchain could bring seamless interoperability between OP Chains. Stakeholders should understand the potential of this development and its implications for the broader Ethereum ecosystem.
