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What is Optimism (OP)?

Optimism basic info

Name:Optimism
Ticker:
Introduction:

Optimism is a Layer 2 Ethereum scaling solution that consists of 3 main components: Ethereum mainnet, Optimistic Rollup, and Optimistic Virtual Machine (OVM). Ethereum users no longer have to deal with congestion problems and high transaction fees as they can use Layer 2. There are also many kinds of Layer 2 Blockchains, and Roll-up solutions, especially Optimistic Roll-ups (Arbitrum, Optimism,etc.) are the projects that attract the most users and have the highest TVL. Recently, Optimism launched the OP token, let’s find out what this token means to the Optimism ecosystem in this article.

What Is Optimism (OP)?

Optimism is a Layer 2 scaling solution on Ethereum to reduce gas fees, and process new transactions faster, thereby providing a smoother user experience while maintaining security from the Ethereum original chain. Optimism is an Optimistic Roll-up project, using a fraud-proof security mechanism.

Simply put, your transaction will be considered valid and approved if it cannot be proven fraudulent.

The Roll-up name refers to the separation of transactions from the main chain, then wrapping them in a single batch and creating proof, posting to Layer 1. Specifically, Optimism’s constructions consist of 3 main components:

  • Ethereum Mainnet: Layer 1 native security platform.

  • Optimistic Rollup: The core of Optimism's scalability.

  • Optimistic Virtual Machine (OVM): A virtual machine compatible with Ethereum, making projects work like they are on L1 Ethereum. The OVM is the environment that allows developers to run their smart contracts onto this solution with only a few lines of code. OVM after all is a virtual machine with much better scalability, helping to process a large number of smart contracts at the same time.

What Makes Optimism Unique?

Optimism's Blockchain has some notable points including:

  • Transaction Experience: With low latency, gas fees are being reduced by 90 times compared to gas fees on Ethereum currently.

  • Scalability: Thanks to the OVM, DApps on Ethereum can migrate to Optimism with only a few modifications.

  • Security: Layer 2 still inherits the strict security level of Layer 1 Ethereum.

Some highlight numbers:

  • Total addresses: 329,000

  • Avg transactions per day: 53,684

  • Avg gas fee (transferring ETH): $0.45

  • Avg gas fee (swapping on DEXs): $0.88

  • Avg gas fee (NFTs): $0.89

  • There are currently 108 projects running on Optimism.

  • The total TVL of the whole system reached 640 million USD, and it became one of the three largest Layer 2 Blockchains on Ethereum.

Recently, Optimism launched the OP token and announced an airdrop for those who have been involved as early adopters and active users of projects in the Optimism ecosystem.

In addition, last March, Optimism also announced the success of a $150M Series B funding round at a valuation of $1.65B. This funding round was led by two famous names, a16z and Paradigm. Prior to that, the $25M Series A round was also led by a16z.

In the latest version, Optimism has introduced the Optimism Collective. Optimism Collective is a large-scale DAO (Decentralized Autonomous Organization) of digital democratic governance, built to drive the rapid and sustainable growth of a decentralized ecosystem. In the near future, the governance of Optimism will be determined by an association between the Optimism Foundation and members of the Optimism Collective.

Similar to the structure of a National Congress, the Optimism Collective will be governed by two houses: the Citizen's House and the Token House.

  • Token House: Established when Airdrop #1 was launched, empowering early adopters to participate in voting on protocol updates, and select projects to receive incentives,... The token here is OP.

  • Citizen's House: The main purpose is to facilitate and manage the process of distributing retroactive public good funding. Citizenship shall be conferred by non-transferable NFTs. More details of Citizen’s House will be revealed in the future.

From the ideas above, the OP's economy would have the following flywheel:

Demand for OP Block space: Funding for the OP economy will come from the Optimism network and its block space value. Participating in OP block space provides a sustainable source of revenue.

A sequencer generates revenues: The sequencer here is a node that handles transactions on L2 and posts them to L1. With the same role as miners, the sequencer will receive a portion of the revenue as transaction fees

RetroPGF: Revenue from the sequencer will be redistributed to the community through Retroactive Public Good Funding. It can be understood as funding, rewarding individuals, projects, and communities that build public good with a positive impact, making contributions to the general community. Citizen's House members will vote on the allocation of this capital.

Value to Users and Builders:

  • Users: Will often receive airdrops from OP, from projects that receive incentives funded by the OP ecosystem and the Retro program.

  • Builders: Will receive rewards directly from the Retroactive program, and have well-funded tools, education, apps, and infrastructure to build the ecosystem.

Team, Investors, and Partners

Team

To achieve the above goals, the project established the Optimism Foundation which acts as the steward of the Optimism Collective, runs the experiments, stimulates the ecosystem, then will eventually dissolve, and give the Optimism community complete control.

The Optimism Foundation will be led by Optimism co-founders Jinglan Wang and Ben Jones, together with Eva Beylin (Director of Graph Foundation), Abbey Titcomb (Head of Community of Radicle), and Brian Avello from Maker Foundation.

In addition, Optimism PBC has also been renamed OP Labs PBC, Liam Horne - formerly Head of Engineering for Optimism PBC, will take over as the new CEO of OP Labs PBC.

Investors

The project most recently raised $150 million from a Series B round led by a16z and Paradigm, and the previous funding rounds include:

  • January 15, 2020, Seed Round ($3.5 million): Paradigm, IDEO Colab Ventures.

  • February 24, 2021, Series A ($25 million): Andreessen Horowitz, Paradigm, IDEO Colab Ventures.

  • March 17, 2022, Series B ($150 million): Paradigm, Andreessen Horowitz. The current valuation is $1.65 billion.

Roadmap Updates

In 2021, the project achieved significant milestones, including the successful launch of the Alpha Mainnet at the start of the year, followed by the official Mainnet at the end of the year, and the completion of the virtual machine,...

Optimism's focus in 2022 will be on developing the ecosystem, Optimism Collective, and next-generation Fault Proof.

Detailed information about OP Token

Key Metrics OP Token

  • Token Name: Optimism (OP) Token

  • Ticker: OP

  • Blockchain: Optimism

  • Token Standard: ERC-20

  • Token Type: Governance

  • Initial Supply: 4,294,967,296 OP

OP Token Allocation

  • Ecosystem Fund: 25%

  • Retroactive Public Goods Funding (RetroPGF): 20%

  • User Airdrops: 19%

  • Core Contributors: 19%

  • Sugar Xaddies: 17%

Ecosystem Fund: A program that stimulates growth in the Optimism ecosystem by funding projects and communities. Ecosystem Fund will be divided into parts:

  • Governance Fund (5.4%)

  • Partner Fund (5.4%)

  • Seed Fund (5.4%)

  • Unallocated (8.8%)

Retroactive Public Goods Funding (RetroPGF): Decided by Citizen's House. The Retro PGF round is expected to take place quarterly to fairly reward projects that positively impact the ecosystem.

Users Airdrops: A series of airdrop events to reward users in the community of Optimism and Ethereum.

Core Contributors: For people who have devoted themselves to making the Optimism Collective from concept to reality and will continue to contribute to the protocol, these tokens will be locked for a period of time.

Sugar Xaddies: Optimism investors, will also be locked for a period of time.

OP Token Release Schedule

A total supply of 4,294,967,296 OP tokens will be available at genesis. The total supply of the token will inflate at a rate of 2% per year.

According to the Token Allocation above, 64% of the tokens will be managed and distributed to the community by the Optimism Foundation.

In the first year, 30% of the initial total supply will be provided to the Foundation for further distribution to the community, in subsequent years, this percentage will be voted by OP token holders.

Disclaimer: All products and projects listed in this article are not endorsements and are provided for informational purposes only.

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Current price:
All-time high:$4.85
All-time low:$0.4005

OP supply and tokenomics

Circulating supply:1,121,728,500 OP
Total supply:4,294,967,296 OP
Max supply:4,294,967,296 OP
Market cap:$1.65B
Fully diluted market cap:$6.32B

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What is the development prospect and future value of OP?

The market value of OP currently stands at $1.65B, and its market ranking is #50. The value of OP is widely recognized by the market. When the bull market comes, the market value of OP will likely continue to increase.

Moreover, if OP can play a greater role in practical applications, such as Optimism builders fully leveraging the potential of OP, partnering with more businesses, and increasing its user base, the long-term value of OP will be significantly enhanced.

What will the price of OP be in 2025?
Based on OP's historical price performance prediction model, the price of OP is projected to reach $1.74 in 2025.
What will the price of OP be in 2030?
In 2030, the OP price is expected to change by -7.00%. By the end of 2030, the OP price is projected to reach $2.66, with a cumulative ROI of +80.63%.
Reminder: Just like all cryptocurrency investments, investors must closely monitor the market performance of OP and be aware of the associated risks. The world of cryptocurrencies is full of uncertainties, so thorough research and preparation are essential.

Is OP worth investing or holding? How to buy OP from a crypto exchange?

If you want to buy OP, the following information may be helpful for your investment decisions:
In the last 7 days, the price of OP has fallen by -18.02%, leading to negative returns for most OP investors. The market is currently pessimistic about the price trend of OP.
It is important to note that the current price of OP has retreated by -69.65% from its all-time high. This coin is currently considered medium-risk, and its price may rebound or continue to fall.
Additionally, it's important to understand that each coin has its own optimal times for buying and selling. The optimal time to invest is dynamic: when a coin is undervalued, it's wise to adopt a buying strategy; when it becomes overvalued, you should decisively sell the coin.
To decide whether OP is worth investing in, you need to consider various market factors such as the overall trend of the cryptocurrency market, the project's fundamentals, its current market valuation, and whether the current price is suitable for buying. If the project's fundamentals suddenly change or the price becomes excessively high, you should adjust your investment strategy and trading operations accordingly.
Your investment decisions should be based on your own risk tolerance, financial status, market analysis and research, especially the timing of your investments. Correct timing can ensure more reliable returns. Keep in mind that investing in OP or any cryptocurrency comes with certain risks and uncertainties.
Regardless of your outlook on the development prospects and future trends of OP, if you want to buy or sell OP, you can consider Bitget for your trading needs. The best place to buy OP is an exchange that offers hassle-free and secure transactions, combined with a user-friendly interface and high liquidity. Every day, millions of users choose Bitget as their trusted platform for crypto purchases.
Investing in Optimism has never been easier. Simply sign up on Bitget, complete the identity verification process, and make payments using bank transfers, debit cards, or credit cards, all while ensuring security through crypto wallets. This is a widely adopted method to buy Optimism. Here's a step-by-step guide on how to buy Optimism on Bitget.

How to get Optimism through other methods?

Using cash to buy Optimism is not the only way to obtain Optimism. If you have the time to spare, you can get Optimism for free.
Learn how to earn Optimism for free through the Learn2Earn promotion.
Earn free Optimism by inviting friends to join Bitget's Assist2Earn promotion.
Receive free Optimism airdrops by joining ongoing challenges and promotions.
All crypto airdrops and rewards can be converted to Optimism through Bitget Convert, Bitget Swap, or spot trading.

What is Optimism used for and how to use Optimism?

The use case of Optimism may expand as the crypto market and the project itself develop. Currently, you can use OP to achieve the following goals:
Arbitrage by trading OP: Since OP is a frequently traded cryptocurrency, the price of OP is always fluctuating. Earn more OP by buying low and selling high on the exchange. Bitget spot market provides a variety of OP trading pairs to fully meet your needs.
Earn by staking OP: You can also generate income through financial management methods such as staking OP or lending OP. Bitget Earn offers a variety of financial products designed to help you earn more income from your OP.
Send or pay OP: If you want to give OP to your friends, a charity, or a fundraiser, or you want to pay someone with OP, you can quickly and easily send OP to the recipient through their payment address.
You can also go to the official website of the Optimism project to learn more about the use cases of OP. For example, find out if the project supports the use of within its community or ecology, or if the project allows you to purchase physical or virtual products in .

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