Optimism is preparing for its end mainnet upgrade next week. This upgrade will provide lower protocol and security fees for users on the platform. This has resulted in the ecosystem governance token, OP, enjoying a price increase, albeit a modest 3.7% over the past 24 hours.
This price action only came after last month’s poor performance as OP Projection by more than 30% in the monthly time frame.
With the promise of lower fees along with the Ethereum-like security of the upcoming upgrade, we may see the OP continue its current bullish trend.
Optimism: Laying the foundation for future growth
described as bedrock mainnet upgrade, It aims to improve efficiency to reduce costs for investors on the platform. According to a recent optimist blog, it should be able to push protocol and security costs by a whopping 47%. The upgrade will use channels that will be segmented again to further improve data compression.
🚀🌐 Layer2 network Optimism is getting ready to upgrade Bedrock soon!
💡💎 Find out how this game-changing update boosts scalability, security and efficiency for optimism and what it means for the future of # ethereum.#optimism OP$ #Layer2 #EIP1559
– KuCoin (kucoincom) June 2, 2023
This upgrade is also compatible with Ethereum’s Dencun upgrade, which will reduce chain costs as a result of danksharding. Danksharding is a process that makes bubbling data available for use by Layer 2 protocols such as Optimism. This improvement will make Optimism more attractive to developers.
OP total market cap currently at $970 million on the weekend chart: TradingView.com
Along with upgrading Bedrock is coming OP Stack Mods are improvements to the OP Stack layer made by community members. These mods can be voted on by the community to be an official part of the OP Stack.
The upgrade also opens up a path for optimism to include improvements to debug proofing with incentives for the community to suggest improvements in the system.
At $1.50, how could that affect OP’s price?
The current trajectory of the token puts it on an ideal path towards higher levels in the coming days. Currently, the OP bulls are targeting $1.70 in the medium to long term with a potential breakout towards the $2 range. If momentum allows, investors and traders should continue with the current price action for higher gains.
Source: CoinMarketCap
With Bitcoin gaining ground at the time of writing, the gains made by the OP bulls should be consolidated in the medium term. With that said, investors should be wary of any downward advance that might come in the next couple of days.
The current support of the token at $1.3 has no support which could pull OP to a range below $1. If this happens, the OP bulls should be able to take a potential drop to the $0.5 support. But the current momentum the token holds is enough for investors to target higher highs with confidence in the coming days.
-Featured image from Shutterstock
