Introduction

Optimism is a Layer-2 scaling solution for Ethereum that supports all dapps and it runs all computations and data off-chain. So, due to this, Ethereum's transactions per second are increased and transaction fees are decreased, rather than running all computation on the Ethereum network.

The purpose of this article is to analyze the network performance, user behavior trends on Optimism chain since August 2022, the time when markets were get turbulent with supporting graphs or visuals.

Network performance

We will first look at the network performance of Optimism chain during July 2022, in terms of standard metrics such as Total number of transactions performed, Total number of users who have interacted or performed optimism transactions, total transaction fees charged, average time per block over the month of July 2022 i.e. the time period during which market has experienced uncertainty.

Market Performance

Here we will analyze the market performance of Optimism chain across various L2 chains such as Arbitrum, Avalanche etc during the bear market situations since August 2021 assessed in terms of different transactional metrics shown below

Significant Inflows and Outflows over Bridges

Optimism NFT Performance

Findings

• A maximum number of transactions has been recorded in the third and last weeks of September 2022 grabbing around 36.5% comparatively, when verified on a weekly basis. Also, a maximum number of users 142.3K has performed optimism transactions in the last week of September 2022, recording a all time highest count on a weekly basis.

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• Highest Transaction fees has been spent or collected in the last week of September 2022, which shows that the market conditions doesn’t show any impact in terms of the network performance on Optimism chain, as the total transactions count and total users interacting on Optimism chain shows an increasing or raising pattern in the month of September 2022.

How does Optimism chain works?

According to Optimism chain, data will be bundled into digestible chunks in optimistic rollups as a means of making it easier to consume. So, A layer-2 chain like optimism is much cheaper than Ethereum, as well as other layer-2 chains such as Arbitrum etc.. Optimism chains are incorporated into Ethereum mainnet layer-2 and even though the transactions are conducted on optimism chain, but data will be published on the Ethereum mainnet for further verification.

Optimism makes use of the concept of rollups, specifically optimistic rollups on Ethereum mainnet. A rollup is simply a compilation of data from several transactions into one transaction on Ethereum mainnet i.e. layer-1. These devices are useful for coin minting, token swapping, and other uses related to non-fungible tokens (NFTs). Also, Gas fees across blockchain transactions that needs to be paid are conveniently distributed across everyone when so many transactions are combined into a single transactions, which makes Optimism feasible to use..

Methodology

For this analysis, initially we will look at the network performance on Optimism chain on a daily and weekly basis in terms of average time taken per block, total number of transactions performed, number of users performing transactions, success vs failure rate, transactions per second etc..

Then we will check the market performance of Optimism during the bear market condition compared to other L2 chains such as Arbitrum and Avalanche in terms of transactional and NFT metrics since August 2022. Further which, we will analyze the inflow/ outflow volume and most popular assets bridged via Optimism native bridge.

We will be using the data derived from optimism.core.fact_transactions, avalanche.core.fact_transactions, arbitrum.core.fact_transactions, optimism.core. ez_nft_sales and optimism.core.dim_labels tables, based on tx_status column as Succeeded.

Observations

When we compare the performance of Optimism with other L1 chains such as Arbitrum and Avalanche during bear market situation since August 2022, looks like Arbitrum is dominant over Avalanche & Optimism in terms of Total transactions performed, average success rate, number of users performing transactions etc.

But, highest daily fees has been observed on Avalanche chain compared to Optimism and Arbitrum when verified since August 2022.

NFTs stands for Non-fungible tokens, where in Non-fungible can be defined as something that cannot be exchanged for another item because its unique. For example, one piece of Art is not equal to another as both will have unique properties.

Basically, NFTs are tokens that lives or survives on a blockchain and represent ownership of unique items. These NFT tokens in general will contain bit of information specific to it, such as unique token name, symbol etc.. and will be owned by the creator or artist of that token. These NFT tokens will be sold by performing sell & buy transactions on the particular blockchain.

Here we will assess the NFT sales and metrics on Optimism chain during the time of bear market conditions since August 2022, with supporting visuals..

Conclusion

According to the above visuals, here are few observations:

• In terms of network performance, a maximum number of transactions has been recorded in the third and last weeks of September 2022 grabbing around 36.5% comparatively, when verified on a weekly basis. Also, a maximum number of users 142.3K has performed optimism transactions in the last week of September 2022, recording a all time highest count on a weekly basis.

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• Highest Transaction fees has been spent or collected in the last week of August 2022, which shows that the market conditions doesn’t show any impact in terms of the network performance on Optimism chain, as the total transactions count and total users count shows an increasing or raising pattern in the month of September 2022.

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• In terms of market performance, we can see the volume of Arbitrum transactions around most of the days (since August 2022 ) appears to be higher than Optimism. The same trend has been observed in case of users transacting and success rate of transactions on Arbitrum vs. Optimsim since August 2022.

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• Moreover regarding the inflow/outflow volume, we can clearly see the impact of recent bear market period on volume of assets bridged via Optimism native bridge and compared to earlier near market condition it seems the impact is pretty much less this time as the volume of asset bridging via Optimism native bridge shows an increasing trend.

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• Similarly, we can see the huge increasing volume of bridge transactions via Optimism native bridges during the last days of August 2022.

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• USDC is the most popular asset that has been bridged via Optimism native bridge during the bearish market time, in terms of the total volume bridged i.e. 470.35M.

References

Tweet link

https://twitter.com/bachkav/status/1590592784322682880

Observations

USDC is the top most popular asset that has been bridged via Optimism native bridge during the bearish market time, in terms of the maximum total volume bridged i.e. 470.35M.

ETH occupies the next position in terms of asset with maximum volume 367.30M bridged via Optimism native bridge when verified since August 2022 onwards.