A well-known crypto analyst shared his disappointment with the on-chain performance of the L2 project he has been following for a long time. He advised altcoin investors not to make the same mistake.
PaoloRebuffo warns altcoin investors against this bug
Twitter’s @PaoloRebuffo expressed dissatisfaction with the on-chain performance of Layer 2 project Optimism. His critique focuses on the on-chain performance of the project rather than the technical issues. In a recent tweet, the analyst accuses himself of making poor judgment on investing in perspective. He called his action a mistake, as the community likes pumps triggered by airdrop hunting, not organic growth.
To support his idea, the analyst shared a screenshot of an on-chain analysis of daily transactions compared to Optimism’s competitor, Arbitrum. He also published the sum of the amount of gas spent on Ethereum for the period studied by the Layer 2 project. His research shows that the increase in Optimism in 2022 could be directly linked to the exercise of the airdrop. Since the airdrop period has ended, all major indices have fallen, suggesting that airdrop hunters may have been selling the tokens for profit.
Cryptocurrency projects use airdrops as marketing tools to raise awareness and deliver their tokens to real users. Participants in airdrops must complete various tasks to promote projects and receive tokens as a reward in return.
Optimism is not alone
Most projects prefer airdrop hunters to keep and use their tokens on their platforms. This is not always the case, as the results show that many participants will exchange the received tokens for more established cryptocurrencies or sell them for fiat. Some hunters use bots to play with the system, accumulating more tokens that need to be allocated to single accounts and throwing them into the markets.
According to PaoloRebuffo, Optimism fell below its main competitor Arbitrum in the number of daily transactions. In his tweet, he expressed his regret, saying that he was caught up in the excitement around Optimism. However, contrary to PaoloRebuffo’s statement, Optimism (OP) was one of the best performing cryptocurrencies in 2023. The OP started 2023 with an opening price of $0.917 and has been rallying ever since. It is trading at $2,368 at the time of writing. It has gained around 20% today.
Meanwhile, according to a tweet posted by crypto analytics firm Delphi Digital on Jan. 16, Optimism continues to collect high trading volume. As the data showed, only the leading altcoin Ethereum had higher trading volume.
Dune Analytics’ analysis of daily transaction data provides a clearer picture of Optimism’s recent volume. Since December 2022, daily transactions are in an uptrend and are trading above the seven-day Moving Average. However, the fact that the transaction volume in January surpassed last year shows that the scaling network is used more frequently.
cryptocoin.com We have included details about Optimism in this article. Santiment’s data turned out to be at levels comparable to OP’s last observed levels in November and September. As a result, Optimism is quickly picking up its gains in recent months, while the overall market is on the upswing.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.