In a month marked by a difficult correction within the crypto market, Layer 2 (L2) blockchain protocol Optimism has emerged as a standout performer. Throughout 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 assist for the layer 2 protocol.
OP Receives Main Funding
Sources acquainted with the matter have revealed to Unchained that a16z has acquired a major 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 consists of crypto alternate Coinbase.
The funding by a16z comes amidst notable exercise and development inside the Optimism ecosystem. Optimism’s OP Stack has skilled elevated utilization, additional validating its worth proposition. The protocol’s means to extend scalability and cut back charges on the Ethereum blockchain has additionally garnered vital consideration.
Optimism’s spokesperson expressed enthusiasm for the funding, acknowledging the power and momentum surrounding the protocol. The partnership with a enterprise capital agency like a16z is anticipated to gasoline 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 practically $90 million, to an undisclosed purchaser.
These tokens had been reportedly sourced from a 30% pool of OP’s unique treasury, devoted to the inspiration’s working finances. Experiences indicated that the customer might 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 current surge within the Optimism ecosystem and its native token OP, the token nonetheless trades effectively beneath its all-time excessive (ATH) reached on March 6, 2024, presently down over 47% from that stage.
Nevertheless, OP’s buying and selling quantity has skilled a notable surge, indicating continued curiosity within the token. In response to 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 almost $600 billion in 24 hours.
Key ranges to watch for the token quickly embrace OP’s vital resistance on the $2.62 value mark and a possible retest of the $3 zone.
Nevertheless, a transparent indication of a constructive development 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 assist stage for OP, because it has held for the previous 5 days and prevented additional value decline for the token.
Digging deeper, the $2.25 mark can also be a key assist, with probably the most vital assist stage at $2.11. This stage 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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