Optimism network- Merry Christmas?

    Question:

    The holidays and New Year are often chaotic in the crypto and defi space, as users make a spree of new transactions and wallets as they receive (and give) some cash and coins as holiday gifts.

    How has this activity impacted the broader Ethereum ecosystems? Are users creating new wallets or buying tokens with their newfound holiday wealth? Are they staking all these new tokens once they get them? Or are they selling tokens to pay for their own gifts and holiday travel?

    Choose an Ethereum chain, fork or Layer 2, such as BSC, Polygon, Arbitrum, Optimism, or Mainnet.

    Create a dashboard that captures activity across metrics such as new users onboarding, token prices, NFT prices, or any other notable trends or events for your chosen chain. Feel free to examine multiple chains or ecosystems in your dashboard.

    Overview of essay:

    In this essay, we are going to study the Optimism during holidays and new year. For this purpose various metrics have been utilized to assess the performance of Optimism.

    This analysis divided into the following parts:

    • Network performance
    • Analysis on DEXs
    • Investigation on DeFi programs
    • Bridge analysis on Optimism
    • NFT sale on Optimism

    Optimism network:

    Optimistic is one of the most famous second layer solutions of Ethereum, which is provided with the aim of making Ethereum more scalable. This second layer solution increases the speed of transactions in the Ethereum network and significantly reduces the cost of transactions or transactions. In this solution, Ethereum network transactions are processed in the second layer and only the information of that transaction will be stored on the main Ethereum network. As a result, the security of this solution is provided by the Ethereum main network, which increases the reliability of this method. Various ideas have been introduced to provide Ethereum layer two solution, among which, solutions that use rollup technology, whether ZK rollup idea or optimistic rollup idea, have higher security and efficiency compared to competitors.

    This solution uses a smart contract. In order to use this layer two solution, people must first transfer their digital assets from layer one, the Ethereum network, to layer two, the Optimism network. This transfer is done by smart contract.

    The main advantage of using Ethereum second layer solutions is that you can pay much lower fees while using programs and platforms launched on the Ethereum network.

    Part 1: Network performance

    Findings:

    The notable patterns related to the network performance of Optimism have been summarized as below:

    • The count of transactions on Optimism blockchain has been decreased on the first days of new year but after that followed the increasing pattern and spiked on January 7, 2023.
    • The price of $OP token decreased since start of December and also reached its lowest price in the final week of 2022 but after January 1, 2023 followed the increasing pattern as can be seen.
    • The active wallets and new users on Optimism chain followed the pattern of transactions during holidays and new year compared to other days. As can be seen, the highest count of newcomers on Optimism network occurred on December 31, 2023.
    • The average transactions per minute (TPM) is one of the important metrics used to investigate on the performance of network. According to the results, the average TPM on Optimism network spiked on January 12 with over 527 transactions in single minute.
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    Part 2: Analysis of DEXs

    Findings:

    On of the most important part of each network is DEXs. The application of DEXs are very vital and can play a decisive role on analyzing network during special circumstances.

    • The application of DEXs during holidays and new year has been enhanced as can be seen in the related graph.
    • Also, the count of unique swappers that interacted with DEXs enhanced too.
    • The highest utilization of DEXs by Optimism users occurred on January 7, 2023.

    As a leading DEX on Optimism, the Velodrome has been analyzed among users during month of July.

    • The application of Velodrome has been decreased during holidays and new year, too.
    • To understand this action by Optimism users, first we should use the features of holidays and new year and find the reasons of this decrement in application of Velodrome.
    • The swap volume in USD validate the previous statements and the enhancement on this metric can be seen obviously.
    • The most popular swap pair on Optimism after holidays and new year is OP/USDC and USDC/WETH from the volume in USD perspective.
    • The most popular assets on Optimism are USDC and WETH from swap to/swap from perspectives.
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    Part 3: Analysis of DeFi programs

    Findings:

    In this part, the application of DeFi programs have been investigated from count of transactions and unique users points of view.

    • The application of DeFi programs on holidays and new year follow the increasing pattern.
    • The most popular DeFi program on holidays and new year is Pika protocol and Granary finance as can be seen.
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    Part 5: NFT purchase on Optimism

    Findings:

    In the final part, lets talk about the NFT sale on Quixotic marketplace on Optimism.

    • The count of sale and unique buyers of Quixotic marketplace have been increased during holidays and new year as can be seen from the related graphs.
    • The highest sale volume in USD occurred on January 7 with over 64k USD by 3881 unique purchasers.
    • The average sale price of NFTs on Quixotic has been increased after holidays and new year in comparison with other days.
    • In the first days of new year, the application of Quixotic NFT marketplace has been enhanced as well as count of unique purchasers.
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    References and useful links:

    Author:

    Credited by MZG

    Discord handle: m.zamani#0361

    Twitter handle: @GargariZamani

    Methodology:

    To handle this investigation, the Data provided by Flipside community has been adopted, accordingly.

    The data related to Optimism network have been shown by optimism.core tables on Flipside. The sub-parts of this mentioned table have been utilized by its application:

    • Most of the parts executed on fact_transactions table.

    • The application of various sectors handle by labeling the destination by the use of dim_labels tables.

    • The LABEL_TYPE used in this essay are dex, defi and layer2.

    • The velodrome swaps handle by velodrome.ez_swaps table.

    • The NFT sale on Quixotic has been estimated by the use of ez_nft_sales table.

    • Use case for holidays and new year and other days like:

      case when BLOCK_TIMESTAMP>='2022-12-25' then 'Holidays and new year' else 'Before holidays' end as days

    • The network performance has been investigated through various metrics like: Count of transactions, active wallets, new users, transaction per minute(TPM) and transaction per wallet.

    • Trade analysis→

      • Swaps, traders, volume in USD, 7-day moving average, average trader and volume of trade per day
      • The most popular asset pairs and their statistics
    • Bridge analysis→

      • Transfer analysis before and after holidays and new year
      • Draw a bridge path
    • Determine the sale activity of NFTs on Flow

      • General metrics→ Count of sale and purchasers- Average sale volume- collection- Floor and highest sale price, Top NFT collections, Purchaser distribution by sale volume in USD and top purchasers.

    Part 4: Analysis of Bridge

    Findings:

    • The application of Layer2 (bridge) on Optimism has been increased dramatically as can be seen from both graphs.
    • Also, the number of users interacted with Layer2 programs enhanced during holidays and new year.

    Conclusion:

    As mentioned in the question, the end of the year holidays and the beginning of the new year have always faced many conflicts, especially in the world of digital currency. According to the results of different parts of this research, the following summary can be imagined in relation to the performance of Optimism network in the new year and its future prospects:

    • According to the parameters related to the network function and the price of $OP, it can be said that the Optimism network has started a growing trend since the beginning of the new year.
    • Also, the amount of trade in this network has increased compared to the last days of the previous year, which can be considered an effective factor in the progress of Optimism network.
    • One of important features of Optimism network is bridge and according to the outcomes of that part, the Optimism network has increasing trend in term of bridge usage.
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    Findings:

    • After holidays and new year the USD volume of bridge from Ethereum to Optimism is more than Optimism→Ethereum.
    • On December 26 over 3.2 million USD have been bridged from Optimism into the Ethereum network and this can be considered as huge spike.
    • Since start of 2023, the bridge volume from Ethereum to Optimism has been followed the increasing trend overtime.
    • The 7-day moving average bridge volume from Optimism to Ethereum is more than other path during holidays and new year.
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    Findings:

    Now lets dive deeper into the NFT purchase on holidays and new year and see how users handle the process:

    • The most popular NFT collection during holidays and new year are Optimistic-explorer and Uniswap collections.
    • The highest sale volume in USD during holidays and new year occurred for sales with 10-50 USD sale price.
    • The top purchaser during holidays and new year has bought NFTs on Optimism network over 18k USD.
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