Optimism’s Native Token OP Poised for a Bullish Run
Adam Cochran, a partner and professor, has expressed his optimism about the future of OP, the native token of Optimism. Cochran believes that OP is currently undervalued and has the potential for significant growth. One of the main factors contributing to this bullish outlook is Coinbase’s involvement in Optimism and its backing of Base, a layer-2 scaling solution for Ethereum.
The Significance of Coinbase and Base
Cochran emphasizes the importance of Coinbase’s user base and its ability to drive retail adoption towards Base. As one of the leading crypto exchanges with billions of dollars in daily trading volume, Coinbase’s influence and discoverability can play a crucial role in the success of Optimism and OP.
- Coinbase backed the development of Base, which utilizes Optimism’s infrastructure for optimistic roll-ups.
- The expected adoption spike resulting from Coinbase’s support for Base is likely to have a positive impact on OP’s price.
Success Stories: Solana and FTX
Cochran draws parallels between the success of Solana and FTX, another prominent crypto exchange. FTX played a significant role in funding Solana’s development and supporting its active protocols. This partnership contributed to Solana’s rise and success in the crypto market.
The Great Convergence of Supportive Events
Coinbase’s recent decision to focus on Ethereum-compatible tokens suggests that Coinbase Commerce may soon integrate with Base. This integration could further enhance the discoverability and adoption of Optimism’s solutions.
- Coinbase Commerce is no longer supporting Bitcoin, Litecoin, and other UTXO tokens.
- The focus on Ethereum-compatible tokens aligns with Base’s usage of Optimism.
Additionally, Ethereum itself is planning upgrades to make transactions on layer-2 platforms more cost-effective. The upcoming Dencun Upgrade in March is part of Ethereum’s long-term scaling roadmap and aims to improve the overall scalability of the network.
According to L2Beat data, Optimism currently has a total value locked (TVL) of $7.8 billion, while Arbitrum leads with a TVL of $15.6 billion. Base has also been gaining traction, with a TVL of approximately $1 billion.
Hot Take: OP’s Potential for Growth 🚀
With Coinbase’s support and involvement in Optimism’s solutions, there is a strong possibility that OP will experience significant growth in the near future. The combination of Coinbase’s user base, the integration of Coinbase Commerce with Base, and Ethereum’s planned upgrades creates a favorable environment for Optimism and its native token OP.
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