Optimism summer and why Ethereum layer-2 token exploded overnight with 55% gains


  • Ethereum layer-2 solution Optimism exploded overnight, offering traders 55% gains. 
  • Ethereum developers have signaled continued progress in testing the new system, holding a series of events ahead of the Merge.
  • Optimism recently unveiled Bedrock, its upgraded rollups architecture at EthCC in Paris. 

Ethereum developers have signaled consistent growth and on-track development ahead of the Merge. The altcoin’s layer-2 scaling solution exploded overnight, offering investors 55% gains on their investment. 

Also read: This bullish pattern terrifies Ethereum competitors ahead of the Merge

Optimism breaks into massive rally ahead of the Merge

Optimism, one of Ethereum’s largest layer-2 scaling solutions, recently witnessed a massive rally overnight. The altcoin has posted double-digit gains, offering investors an opportunity to book 55% profits overnight. 

There are three key reasons for Optimism’s explosive gains. Analysts at Bloomberg believe that the rally witnessed in Ethereum and related assets signals confidence among investors on the transition to Proof-of-Stake. The switch is expected to take place in September, and since developers have signaled continued progress towards the Merge, Ethereum and related cryptocurrencies, including layer-2 solutions, exploded. 

Developers behind Optimism participated in the EthCC conference in Paris and offered insights on:

  • Leveling up optimistic rollups through Cannon, next-generation fault-proof architecture.
  • Optimism introduced Bedrock, the protocol’s next major upgrade. 

These developments chart the future of Optimism and the ecosystem’s growth over the next few months. Optimism revealed its plans for adopting Proto-Danksharding or EIP-4844 sustainably and efficiently. News of on-track development and community events fueled a bullish sentiment among investors. 

Optimism Summer on the way?

rektGEMS, a leading crypto analyst, evaluated the performance of projects on the Optimism network and Optimism’s explosive growth. The analyst noted that:

1. Optimism (OP) has outperformed Ethereum (ETH) in the last two weeks by over 100%. 

2. Optimism’s TVL has almost doubled in July 2022

VelodromeFi, a central trading and liquidity marketplace, witnessed a 600% increase in its Total Value Locked. The project is now the number one decentralized exchange on Optimism. The analyst sheds light on OP Grant Proposal and identifies projects that could witness a rally in response to explosive growth in the Optimism ecosystem. 

Analysts at FXStreet predict u-turn in Ethereum price

Analysts at FXStreet evaluated the Ethereum price trend and predicted a u-turn in the altcoin. Analysts believe Ethereum could see a retest of $1,000 in a potential trend reversal. For price targets and more information, check the video below:

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP