In a month marked by a difficult correction within the crypto market, Layer 2 (L2) blockchain protocol Optimism has emerged as a standout performer. Inside the previous 24 hours, Optimism’s native OP token skyrocketed by 9%, positioning it because the best-performing token among the many high 100 cryptocurrencies.
Behind this surge lies enterprise capital agency a16z, which has reportedly invested round $90 million in Optimism’s OP token, signaling additional institutional help for the layer 2 protocol.
OP Receives Main Funding
Sources accustomed to the matter have revealed to Unchained that a16z has acquired a big stake in Optimism’s OP token.
The funding, which comes with a two-year vesting interval, underscores a16z’s curiosity within the Layer 2 protocol and aligns with its rising involvement in crypto. Notably, a16z’s portfolio already contains crypto trade Coinbase.
The funding by a16z comes amidst notable exercise and progress inside the Optimism ecosystem. Optimism’s OP Stack has skilled elevated utilization, additional validating its worth proposition. The protocol’s potential to extend scalability and scale back charges on the Ethereum blockchain has additionally garnered vital consideration.
Optimism’s spokesperson expressed enthusiasm for the funding, acknowledging the vitality and momentum surrounding the protocol. The partnership with a enterprise capital agency like a16z is predicted to gas additional growth and innovation inside the Optimism ecosystem.
On March 7, the Optimism Basis disclosed the sale of roughly 19.5 million OP tokens, valued at almost $90 million, to an undisclosed purchaser.
These tokens have been reportedly sourced from a 30% pool of OP’s authentic treasury, devoted to the muse’s working price range. Studies indicated that the customer may delegate their tokens to 3rd events, enabling them to take part in Optimism’s governance.
The muse clarified that, because of the non-public nature of the sale, particular particulars concerning the phrases and purchaser weren’t disclosed.
Key Ranges To Watch For Optimism
Regardless of the latest surge within the Optimism ecosystem and its native token OP, the token nonetheless trades properly under its all-time excessive (ATH) reached on March 6, 2024, at present down over 47% from that degree.
Nonetheless, OP’s buying and selling quantity has skilled a notable surge, indicating continued curiosity within the token. Based on CoinGecko information, the OP buying and selling quantity has elevated by over 113% in comparison with the earlier buying and selling day on April 30, amounting to just about $600 billion in 24 hours.
Key ranges to watch for the token quickly embrace OP’s vital resistance on the $2.62 worth mark and a possible retest of the $3 zone.
Nonetheless, a transparent indication of a optimistic pattern for the Optimism token would require a profitable consolidation above the $3.92 zone, marking the tip of the month-and-a-half downtrend construction.
Conversely, the $2.37 zone has confirmed to be a vital help degree for OP, because it has held for the previous 5 days and prevented additional worth decline for the token.
Digging deeper, the $2.25 mark can also be a key help, with probably the most crucial help degree at $2.11. This degree holds the important thing to Optimism’s macro bullish construction, because it initiated the token’s present uptrend.
Featured picture from Shutterstock, chart from TradingView.com
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