• Optimism [OP] has announced plans to become a “Superchain” in order to unite various siloed L2s into one cohesive and interoperable system.
• On-chain metrics and market indicators have been bullish, with OP’s revenue increasing constantly since its launch in 2021.
• Coinbase has also announced the development of Base on Optimism’s OP Stack, with the goal of creating a standard, modular Superchain powered by Optimism.
Optimism Announces Plans for Superchain
Optimism [OP] has made a bold announcement on 23 February, revealing its plans to become a „Superchain.“ The Superchain aimed to combine various siloed L2s into one cohesive and interoperable system. Moreover, Optimism stated that it needed to work toward a future when launching an L2 was as simple as deploying a smart contract on Ethereum [ETH].
On-Chain Metrics & Market Indicators Bullish
Token Terminal’s data pointed out that Optimism’s revenue has been increasing constantly since its launch in 2021, which was a positive trend. Apart from this, Coinbase announced that it was developing Base on Optimism’s OP Stack with the goal of developing a standard, modular, rollup agnostic Superchain powered by Optimism in order to facilitate the path toward decentralization.
Price Surge Following Developments
OP’s price responded to these developments by painting its daily and weekly charts green. According to CoinMarketCap, OP’s price increased by over 8% in the last 24 hours, and at press time, it was trading at $3.09 with a market capitalization of over $725 million.
On-Chain Performance Supports Surge
Moreover, OP’s on-chain performance supported this surge in price, increasing the chances of registering more gains in the coming days. For instance, the token’s MVRV Ratio went up considerably, which was a bullish signal. OP’s network growth and velocity both registered upticks in the last few days as well as an increase in social volume. However, daily active addresses declined over the last week.
Next Wave Of Adoption Approaching?
It appears that optimism is preparing for another wave of adoption as it continues to step up its game with regards to unifying different L 2 chains into one platform for chains. With all these developments taking place along with positive market sentiment surrounding OP’s token performance it looks like optimism might be ready for another push towards further adoption!
• According to Chainalysis, revenue from cryptocurrency scams went down by 46% in 2022.
• Investment scams generated the most revenue last year, at $3.4 billion.
• Romance scams had the most destructive impact on a revenue-per-victim basis.
Investment scams were the dominant category of crypto scams in 2022, with all ten of the top scams being investment scams. Hyperverse was the top scam of 2022, generating almost $1.3 billion in revenue. Crypto fraudsters adopted stablecoins for their schemes as a hedge against a market crash and to capitalize on potential victims who hoped to take advantage of rising prices in Bitcoin (BTC). The data also revealed that investment scams were most correlated with Bitcoin’s price movements, likely due to promises of outsized returns.
Despite generating lower overall revenue than investment scams, romance scams had an average victim deposit of almost $16,000 which is nearly triple the next closest category. The total revenue and reach of romance scams are likely higher than reported due to underreporting by victims because of the personal nature of these schemes. Moreover, 1% of victim payments to crypto-related frauds come from crypto ATMs, indicating this payment method is not commonly utilized for illicit activities.
Chainalysis‘ report found that most scam revenue disproportionately comes from the U.S., particularly NFT-related frauds. Furthermore, centralized crypto exchanges and DeFi protocols sent significant amounts towards scammers as well.
Overall, cryptocurrency scam revenue has significantly decreased since 2021 despite various types of fraud still impacting users around the world today. Investment scammers remain dominant but other categories such as romance and NFT related schemes are also prevalent amongst fraudsters with varying effects on victims depending on their individual circumstances and intentions behind their investments into digital assets or services related to them
• 1inch network has commenced the distribution of funds set aside as gas refunds for December and January.
• 1inch users can now migrate from its V1 staking protocol to its staking protocol V2.
• There is a wave of FUD triggered by the SEC’s assault on crypto staking on exchanges causing a bearish outcome in the market.
1INCH Network Commences Distribution of Funds
The 1inch network recently revealed positive news, especially for members of its resolver incentive program. The network has begun distributing funds that were set aside as gas refunds for December and January. Up to 10 million INCH are allocated, with already over 1.5 million being paid out so far. This provides an incentive for stakers to delegate Unicorn Power to resolvers which will benefit from arbitrage trading.
Migration From V1 Protocol to V2
In addition, 1inch confirmed that users can now move from their V1 staking protocol to its new V2 protocol. Refunds associated with this migration will be issued in March, covering fees incurred during the first two months of 2021. These incentives could potentially encourage more participation in the network and more investors joining in the long-term outlook for 1INCH tokens.
Supply Reduction On Exchanges
Exchange outflows have also been observed which is likely due to retail buyers pushing up demand and reducing supply on exchanges significantly over the last few days. The largest amount of token supply is held by addresses holding between 10 million and 100 million tokens who have been selling off over the past two days having a negative impact on market prices.
SEC’s Assault On Crypto Staking
The bearish effect seen recently is mostly attributed to FUD caused by the SEC’s attack against crypto staking on exchanges. This had caused prices for 1INCH token at press time to drop 11% down from $0 .52 previously traded at .
Overall, despite a current pullback in prices due to FUD surrounding crypto staking regulations, it appears that incentives such as these are encouraging long-term investments into 1INCH tokens which could help support price recovery going forward
• Aave’s treasury funds saw significant growth due to consistent revenue generation.
• Compared to its competitors such as BenQI and Compound, Aave’s treasury funds grew materially in the last three months.
• Uniswap [UNI], MakerDAO [MKR] and Aave [AAVE] tokens could not generate interest from new addresses, according to data from Santiment.
Aave Treasury Growth
Decentralized lending protocol Aave [AAVE] has seen a growth in its treasury funds, according to a 1 February tweet from Delphi Digital. The growth in treasury funds is an indicator of consistent revenue generation for the protocol, which can be used for various initiatives, such as development, marketing, and strategic planning. This strong and growing treasury can also provide stability and assurance to investors and stakeholders, which can increase confidence in the protocol and lead to increased demand for its tokens.
Competitors Witness Surge
Other competitors also witnessed a surge in their treasury funds. Compared to its competitors such as BenQI and Compound, Aave’s treasury funds grew materially in the last three months. However, other DEXes such as Uniswap [UNI] and MakerDAO [MKR] also witnessed growth in this area. According to Dune Analytics, Uniswap’s treasury funds increased over the last few months despite the volatility observed in the crypto market. Similarly, MakerDAO weathered the storm and saw growth in terms of assets held by the protocol mostly consisting of stablecoins accounting for 59% of its overall assets but it was MakerDAO’s Real World Assets that generated most revenue for the protocol.
Declining Network Growth
Despite these protocols‘ growing funds however, their tokens couldn’t generate interest from new addresses according data from Santiment; UNI took a significant hit with network growth declining significantly whereas AAVE outperformed other protocols despite declining network growth too.
Aave’s growing treasury fund is a positive sign for the protocol showcasing consistent revenue generation providing stability & assurance to investors & stakeholders increasing confidence leading to increased demand for its tokens – compared with competitors like Uniswap & MakerDAO highlighting financial strength albeit decreased network growth amongst all tokens involved lessening investor interest overall.
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