Optimism price continued its bullish recovery on Thursday as demand for the coin rose. As a result, OP crypto price jumped to $2.23, which was the highest point since June 1st of this year. It has surged by more than 421% from its all-time low, giving it a market cap of over $500 million.
What is Optimism?
Optimism is a small but fast-growing layer two platforms that seeks to solve some of the top challenges that Ethereum has. It supercharges speeds of leading applications and helps lower transaction costs. Indeed, like Polygon, it has saved its users millions of dollars in gas fees in the past few months.
Optimism, like Arbitrum, has been embraced by some of the biggest developers in the industry. Synthetix, Velodrome, Uniswap, Aave, and Perpetual Protocol are some of the most notable apps in its ecosystem. In total, its DeFi platforms have a total value locked (TVL) of over $612 million.
The Optimism price is surging as investors react to the recovery of its ecosystem. For one, its TVL has surged to an all-time high. This growth has been led by Synthetix, whose TVL has risen by over 60% in the past 30 days.
Another reason why OP crypto price is rising is that the Fear of Missing Out (FOMO) has set in. After rising by over 400%, many investors are buying it, hoping the bullish trend will continue. They hope that it will rise and retest its all-time high. Most importantly, buyers hope that it Optimism will grow and reach the size of Polygon, which has a TVL of over $1 billion.
Optimism price prediction
The four-hour chart shows that the Optimism price has been in a strong bullish trend in the past few months. It has managed to move above the important resistance point at $1.98, which was the highest point on July 29th. The pair remains slightly above the 25-day and 50-day moving averages while volume remains elevated.
Therefore, I am still cautiously optimistic that the bullish trend will continue after this breakout. If this happens, the next key level to watch will be at $3, which is about 40% above the current level. A drop below the support at 1.7400 will invalidate the bullish view.