Hamster Kombat

Defi

Optimism

Avalanche

Optimism token remained in a deep bear market as the recent rally of most cryptocurrencies stalled.&nbsp; 
Optimism (<a rel="" href="https://crypto.news/price/optimism/">OP</a>), a leading layer-2 token, was trading at $1.5140 on Oct. 10, down 70% from its highest point this year. 
One reason Optimism has retreated this year is that the network has continued to lose market share in the industry. 
It has been overtaken in key areas like <a href="https://crypto.news/understanding-defi-and-its-uses/" target="_blank">decentralized finance</a> by layer-1 networks like Avalanche (<a href="https://crypto.news/price/avalanche/" target="_blank">AVAX</a>) and Sui (<a href="https://crypto.news/price/sui/" target="_blank">SUI</a>). It has also been passed by popular layer-2 networks like Base and Arbitrum. 
Optimism’s total value locked in the DeFi industry has dropped to $627 million, down from its year-to-date high of $1.04 billion. Additionally, the <a href="https://defillama.com/chain/Optimism?stables=true&amp;tvl=false" target="_blank" rel="nofollow">volume of stablecoins</a> in its ecosystem has fallen from the year-to-date high of $1.35 billion to $1.17 billion. 
Furthermore, its role in the DEX index industry has diminished, with <a href="https://defillama.com/dexs/chains" target="_blank" rel="nofollow">weekly volume</a> declining by 24% to $503 million, while Sui’s and Base’s volume has jumped by 51% and 5%, respectively, during the same period. 
OP’s price retreated after developers unveiled its fifth airdrop, unlocking 10 million OP tokens to 54 million. 
 You might also like: <a rel="" href="https://crypto.news/sui-price-set-for-new-ath-amid-native-usdc-launch/"> SUI price set for new ATH amid native USDC launch </a> 
It now has 500 million OP tokens remaining for future airdrops, meaning existing holders can expect further dilution. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 🔴&nbsp;Use the Superchain, and reap the benefits 🔴 Today, <a href="https://twitter.com/Optimism?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">@Optimism</a> unveils Airdrop #5: Onchain together, benefit together. 10M+ OP has been allocated to 54k+ unique addresses. As of today, roughly 550M OP remains for future airdrops. <a rel="nofollow" href="https://t.co/TCS1oSXKBs" target="_blank">pic.twitter.com/TCS1oSXKBs</a>— Optimism (@Optimism) <a href="https://twitter.com/Optimism/status/1844066394440417398?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">October 9, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
Most of this dilution will occur because Optimism has a circulating supply of 1.25 billion tokens against a maximum supply of 4.29 billion. According to <a href="https://defillama.com/unlocks/optimism-foundation" target="_blank" rel="nofollow">Defi Llama</a>, the network unlocked 49.19 million tokens in September, with the final unlock scheduled for 2026. 
Meanwhile, Optimism’s volume in the futures market has also declined. Data shows that futures open interest dropped to $104 million on Oct. 10, down from the year-to-date high of $327 million. 
<h2 class="wp-block-heading" id="optimism-token-is-at-risk-of-more-downside">Optimism token is at risk of more downside</h2> 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/10/Optimism-price.png" alt="Optimism price" class="wp-image-14302837">
 <figcaption class="wp-element-caption">
 Optimism price chart | Source: <a href="https://www.tradingview.com/symbols/OPUSD/?exchange=CRYPTO" target="_blank" rel="nofollow">TradingView</a>
 </figcaption>
</figure> 
On the daily chart, the OP token has been in a strong downtrend since peaking at $4.86 in March. 
It has remained below the 50-day and 100-day Exponential Moving Averages. Additionally, the Relative Strength Index, which measures the rate of change, has pointed downwards. 
Optimism has also formed a bearish flag pattern, suggesting the potential for a bearish breakout. If this occurs, it could drop and retest the support at $1.06, its lowest point in August. 
 You might also like: <a rel="" href="https://crypto.news/hamster-kombat-meltdown-continues-token-hits-record-low/"> Hamster Kombat meltdown continues, token hits record low </a>

Optimism token price is at risk of a bearish breakdown

Table of Contents

crypto.news

Other articles published on Oct 10, 2024

AI Companions Price Prediction: AIC Slumps 15%, But This PEPE 2.0 Meme Coin Is Roaring Towards $2...

South Korean Law Recognizes Cryptocurrency in Divorce Settlements

South Korean regulator to review crypto ETF approval: report

Here's Why People Want to Buy Ethereum (ETH): Top Bitcoin Evangelist

Shiba Inu (SHIB) New Key Pattern Just Dropped, Anemic XRP Performance Might End Here, Dogecoin (D...

BREAKING: After BlackRock, Giant Investment Company Fidelity Takes the Expected Cryptocurrency Step

Join our free newsletter for daily crypto updates!