3 - 5 minute read
Crypto analytics firm Santiment is warning traders to keep an eye on a little-known Ethereum-based altcoin called Optimism (OP), which saw a sudden surge in transaction volume just as it reached a local top. According to Santiment, the transaction volumes of Tether (USDT) and USD Coin (USDC) on the layer-2 blockchain increased by over 99,000% on Optimism in unexplained circumstances. This led to average transaction volumes reaching above $1 billion, compared to the normal average of less than $10 million.
Santiment noticed that while there was a high level of token velocity on Optimism at the time, there were no anomalies detected in the number of active addresses. The firm also pointed out that the surge in stablecoin transaction volume on Optimism coincided with the altcoin reaching a top when paired with Bitcoin (BTC), and a high level of bullishness among the crypto community.
Santiment’s warning for traders to keep an eye on Optimism (OP) comes at a time when the overall crypto market is showing a mix of stability and volatility. Bitcoin (BTC) has remained relatively stable, trading around $16,780 and almost flat in the past 24 hours. Ether (ETH) has followed a similar trajectory, down 0.3% at around $1,209. However, other altcoins have seen more dramatic fluctuations, such as Waves (WAVES) which saw a 5% drop to $1.51, and dYdX (DYDX) which fell 14% to $1.18.
🤞 #Optimism saw a massive spike in transaction volume of #stablecoins on its blockchain, just as $OP hit its local top last week. Our latest insight covers the increase in address activity, transaction volume coinciding with price reversals and more. 👀 https://t.co/ZJ4UHsK3PQ pic.twitter.com/TVoIXqFJPT— Santiment (@santimentfeed) December 21, 2022
In this context, Optimism’s sudden surge in transaction volume stands out as an unusual and potentially significant event. It is unclear what is driving this increase in activity, and Santiment has suggested that it could potentially be related to liquidity mining or wash trading. However, without more information it is difficult to accurately assess the situation. This is why Santiment is advising traders to be cautious and thoroughly research any potential investments, particularly in lesser-known altcoins like Optimism. It is important for traders to stay informed and vigilant in order to make informed decisions about their investments.