Optimism (OP) Rallied by Almost 300% in 30-Days, Will its Rally Sustain?

The trading value of Optimism (OP) has been undergoing significant growth in the past 30-days. Since the start of July, the trading value of Optimism has continued surging, which is due to its connection with Ethereum.

Almost 300% Rally Recorded by Optimism

The trading price of Optimism has experienced an almost 300% rally in the past 30-days. Due to the exceptional rally, the trading value of OP has risen to $2.31. Even now, the trading value of OP is hovering around the $2.31 level.

The reason behind OP’s Surge

Optimism’s strong connection with Ethereum is attributed to the strong rally and performance delivered by OP. The analysts expect that the value of OP may rise even more when the proof-of-stake goes live for Ethereum.

The particular consensus protocol will be implemented with the deployment of the “Merge” in the month of September. When that happens, the value and need for Optimism may rise tremendously.

This would see the trading price of the digital asset skyrocket at a humongous rate.

Why Optimism is gaining so much Hype

The strong connection between Ethereum and Optimism is that the latter is the roll-up solution for Ethereum.

Optimism exists as the layer-2 solution that is in place to facilitate the transaction verification for Ethereum.

The purpose of the protocol is to aid the off-chain verification process for Ethereum transactions. This way, the protocol helps boost the scalability of the Ethereum blockchain transactions.

The Rollup-Centric Roadmap of Ethereum may become the reason that Optimism may succeed in benefiting from the implementation of the Merge.

According to the roadmap, the main chain is to become the data availability as well as the settlement layer. It uses the danksharding feature on the layer-2 protocol to hand over the scalability to the particular protocol.

Possible Surge in Ethereum’s Transaction Throughput

At present, the transaction throughput of the Ethereum architecture and the combined rollup offer is 1,000-4,000 TPS.

However, with the introduction of shards, the transaction throughput on the Ethereum network may increase to 100,000 TPS.

This is where OP comes in and it will benefit tremendously with the introduction of the Merge. Right after the confirmed date for the implementation of the Merge on July 15, the demand for OP has continued rising.

OP’s Value may dip in August

Although the Merge may have a positive outcome for OP its technical metrics cannot be ignored.

It is expected that in the upcoming weeks, the RSI for OP may dip, resulting in a bearish trend. This could result in pulling the trading price of OP to $1.54.

If the situation keeps getting more and more bearish, the trading price of OP may drop further, falling to $1.36.

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