The world of Optimism just went to a whole different level.
That's right.
We've been telling you guys that Optimism is going to be a big competitor to Polygon
in this next bull run.
And now we've got even more reasons to be optimistic
it might even catch it.
Why? Well, let's just say a new partnership might give it just what it needs
to get to the next level.
Let's get it!
Welcome to BitBoy Crypto!
My name is Ben.
This is my channel, believe it or not.
And right now we are looking at Optimism here on LunarCrush.
Just a quick look at the chart here.
You can see some sideways action.
Coming in at $2.48 right now.
Plus 161%.
I guess that is over, I think, about the last year,
somewhere around there, but it has done absolutely phenomenal.
Now, let's take a look at why some of this is.
Well, here we go. We got Andreessen Horowitz.
I don't know if you guys have heard of Andreessen Horowitz
or the famous a16z funding round.
Of course, remember on Joe Rogan, Coffeezilla couldn't remember the name of it.
But the point is,
Andreessen Horowitz is a big player in the game of VCs and hedge funds as well.
So let's take a look at this.
Optimism has been on a hiring spree and plans to expedite its mainnet launch
after securing backing from Andreessen Horowitz.
And, of course, if you go and look at this date here,
this date was February 25, 2021.
So quite a while ago.
Andreessen Horowitz, which manages a portfolio worth roughly $16.6 billion,
announced it is leading Optimism's $25 million Series A investment round on February 24.
To achieve lower fees, lower latency and greater throughput
compared to transacting on Ethereum's layer 1 mainnet,
Optimism uses "rollups" to bundle transactions together
using smart contracts on an Ethereum sidechain before broadcasting them to the mainnet.
But here's what you need to know.
Anything that Andreessen Horowitz, and, specifically, Marc Andreessen,
whatever they touch pretty much turns to gold.
They don't have a lot of misses, a lot of losses in the world of investing in crypto.
They've got a lot of wins.
And you can see from now,
back on February 25, 2021,
they picked a winner big time.
Now, we also have Coinbase.
They're picking a winner here, picking a winner here with Optimism.
Coinbase launches layer 2 blockchain Base to provide on-ramp for Ethereum, Solana and others.
Base is built on Optimism.
February 23, 2023
Just announced.
You guys probably heard about this big news.
It made a bunch of waves.
Crypto exchange Coinbase launched Base,
a layer 2 network built using Optimism's OP Stack,
to attract millions of new crypto users in the coming years.
The testnet of Base was started by Coinbase on Thursday.
Coinbase is joining Optimism as a core developer on the open source OP Stack.
Base will not be limited to Ethereum.
It will also provide easy and secure access to layer 2 networks such as Optimism,
as well as other blockchains ecosystems like Solana.
Coinbase has no plans to issue a new network token.
Now, this is big, right?
Because if Coinbase were potentially launching their own token,
then this may take away from some of the prospects of Optimism itself.
Now, what happened when Coinbase announced this?
Well, of course, price goes up.
Coinbase shares up 6% since unveiling layer 2 Ethereum network Base.
Look at Brian Armstrong.
Look at that.
I'd like to draw some hair on him.
So, basically, what happens is,
Coinbase announced its partnership with Optimism.
The entire Optimism ecosystem pumps.
Big surprise.
Tokens of Optimism ecosystem surge as Coinbase unveils its layer 2 Base.
VELO,
the native token of the Optimism-based decentralized exchange Velodrome Finance,
has gained 21% in the past 24 hours.
Optimism-native lending protocol Sonne Finance's SONNE token
has jumped 82%, taking its 7-day rally to over 300%.
And there were more.
OPX, THALE, HND, RING and PICKLE!
Everybody loves to tickle the pickle.
We have the tokenomics here.
Now, this a pretty cool chart here looking at Optimism.
This is from Olimpio.
Core contributors to the team,
seed investors,
ecosystem fund,
shows really where all the tokens are spread out.
Here's the token allocations for Optimism.
Retroactive public goods funding - 20%
Sugars xaddies -
Sugar xaddies - 17%
Core contributors - 19%
User airdrops - 19%
And the ecosystem fund - 25%
So it shows you a little bit about the token allocation.
It doesn't seem to be out of balance anywhere, in my opinion.
So let's talk about how it is governed.
How is this going to be governed?
The Optimism Collective takes an experimental and agile approach to governance.
You have two houses.
You have the Token House. You have the Citizens' House.
As Token House members,
OP holders are responsible for submitting, deliberating,
and voting on various types of governance proposals.
In carrying out these functions, OP holders may either vote directly,
or delegate their OP voting power to an eligible third party.
Then you have the other Citizens' House.
The Citizens' House is a large-scale experiment in non-plutocratic governance
and retroactive funding of public goods.
It's responsible for retroactive public goods funding.
If we come back over here,
you guys see that it's part of this 20% here.
So Citizens' House will be over this.
Now, let's talk about the three big competitors here.
This is really the nuclear arms race of layer 2 on Ethereum.
We have Polygon.
Of course, everybody knows Polygon.
It's on my dang shirt!
Right there.
Everybody loves Polygon.
We made a lot of money with Polygon in the last bull run.
We have Optimism, which we've been going over here pretty extensively.
And you also have Arbitrum, which just launched the news of its airdrop
that will be coming pretty soon.
So expect Arbitrum to really step up to the plate here soon.
But which one is going to prevail?
Polygon is the most active network, but Optimism is catching up.
And I'll give you my big prediction here.
My big prediction is,
I believe Polygon will remain No. 1 in this bull run for layer 2.
However, I believe Optimism will be the biggest mover.
I think Optimism's going to make up a lot of ground against Polygon
in the next two years.
In terms of ETH transactions,
Optimism and Polygon have shown a clear upward trend over the last six months
since October 2022.
Here are the daily ETH transactions by chain.
You guys can see how much further ahead Polygon is than everybody else.
You guys can see here, Optimism made a pretty sharp upward trend.
And, of course, Arbitrum is trending upwards as well.
Man, we're going to really have to see what happens with Arbitrum
over the next couple of weeks
as, you know, people are starting to get really excited about it.
Optimism is seeing exponential growth in daily transactions under this heading.
From just under 400,000 in October, they've grown to almost 1.5 million.
This is an indicator that altcoin trading is on the rise here.
Arbitrum is in a secluded 3rd place in this regard.
So that's right. You can't see here,
obviously,
we do have Optimism way above Arbitrum, but that could change pretty soon.
And then we have this.
Coinbase launches "wallet as a service."
And this is key.
The service ensures that self-custody keys are safe
even if a user's device is compromised.
Even if an end user loses access to their device,
the key to their Web3 wallet is still safe and can be securely stored.
Firms can tap Coinbase's "wallet as a service"
in order to offer their users wallets directly in their apps
with onboarding as simple as a username and a password.
Now, why is this big?
Well, we're looking for how can Optimism potentially pass Polygon?
What is the route?
Well, when you have Coinbase saying they're already going to be working with Optimism
now saying they have a "wallet as a service" coming out that anybody can use,
guess where it's probably going to run on?
I mean, we could be speculating here,
but, most likely, this is going to be ran on Optimism.
It's going to be absolutely huge
for the number of transactions.
As you can imagine, Coinbase is far and away the No. 1 exchange in America
and one of the safest and most trusted names in crypto, to be honest with you.
So the closer Optimism can be tied to that,
probably the more credibility it's going to have.
Let me know what you guys think.
Do you like Optimism?
Do you like Polygon?
Do you think Arbitrum is going to come out of nowhere passing both?
Drop those comments down below.
That's all I got.
Be blessed.
BitBoy out.