It appears to be like many Optimism users who claimed the day previous to this’s token airdrop are now leaving the community. The mass exodus has triggered efficiency components on Layer 2 bridges.
Key Takeaways
- Many recipients of Optimism’s contemporary OP token own begun offloading their holdings and transferring them again to Ethereum mainnet.
- The exodus has triggered a lack of liquidity in bridges connecting Optimism to Ethereum mainnet, ensuing in gradual and failed transfers between the 2 networks.
- The OP token’s mark has declined 70% because it started trading—now not a wholly irregular consequence for preliminary token airdrops.
The Optimism token has additionally dropped over 70% since trading started the day previous to this.
Users Money Out From Optimism
Optimism airdrop recipients are taking their beneficial properties again to Ethereum.
Bridges connecting Ethereum to the Layer 2 community Optimism are experiencing efficiency components this day as users who bought the community’s token airdrop ship their beneficial properties again to Ethereum mainnet.
Hop Protocol, the finest Optimism to Ethereum bridge, reported on Discord Wednesday morning that the bridge modified into seeing “a large spike in quantity” and that transfers again to mainnet would be disabled except extra USDC and ETH liquidity modified into freed up. Users of Synapse and At some level of Protocol, two competing bridges, own additionally reported gradual or failed Optimism withdrawals. In line with a dev make stronger myth in the At some level of Protocol Discord server, the protocol modified into seeing a high selection of transfers away from Optimism in opposition to the Ethereum Mainnet. “Right here is inflicting some non permanent liquidity shortages on the skedaddle bother chains, and some transfers would possibly perchance well perchance also be delayed. Any delayed transfers wants to be finalised within 2 hours,” they mentioned.
Optimism is a Layer 2 community designed to encourage scale Ethereum. The day past, over 249,000 early Optimism users who met obvious requirements bought an airdrop of the community’s newly launched OP token. Though the Optimism crew tried to airdrop tokens to active and engaged community users over those attempting to farm the airdrop, many recipients are picking to remodel their OP tokens to ETH and ship their funds again to Ethereum mainnet.
On myth of the exodus, the OP token mark has been hit exhausting. Presently after the airdrop went are residing, OP started trading at around $4.52, putting the token’s fully diluted worth at over $19 billion. Nevertheless, as extra users claimed their airdrop, the token’s mark plummeted. The OP token’s mark appears to be like to own stabilized and is for the time being altering hands for $1.34, down over 70% since its launch.
The OP token’s intelligent decline modified into now not wholly unexpected. Earlier airdropped tokens, equivalent to those from ParaSwap and CoW Protocol, additionally skilled identical declines shortly after launching. On the different hand, final Twelve months’s Ethereum Name Carrier airdrop modified into in a role to increase from its preliminary drop in the immediate term. With possibility-on appetite in the broader crypto market waning, it appears to be like to be an uphill fight for OP token bulls going forward.
Disclosure: On the time of scripting this portion, the creator owned ETH and several other different cryptocurrencies.
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