According to data from on-chain analytics platform Santiment, since its inception in May, OP, the primary benchmark for Layer 2 scaling solutions provider Optimism, has recorded growth in its on-chain activity.
Interestingly, despite the increase in on-chain activity, Price OP failed to follow suit and post gains. Data from Santiment showed a steady decline in OP price since August 4th. Trading at $0.871 at the time of writing, the price of the crypto asset is down 58% since August.
On the other hand, the number of active titles OP has bought has increased since then. The number saw more than 100% growth over the same period.
Similarly, while the price of OP decreased, the growth of the network showed a slight rise.
According to Santiment, the number of daily active titles and new titles on the OP network is “at the highest levels since $OP’s launch in May.” Moreover, their difference in relation to the price of the asset was a classic case of the differences between price and activity in the chain.
OP rating on the series
A look at the average dollar investment life (MDIA) of OP revealed that the period in which its price began to fall coincided with the rise in MDIA. An increase in MDIA for an asset creates a slack in the network, which can make it difficult for the asset’s price to grow.
Also, according to Santiment, the OP’s MDIA has increased more than 1,000% since August 16. This showed severe stagnation in the OP’s network despite the increase in daily active titles and new titles.
With the MDIA uptrend continuing, the OP price may fail to register any significant growth in the coming days.
blessing in disguise
With regard to the behavior of options accumulation, which survived the continued decline in prices, the number of holders of 10,000 to 1,000,000 OP tokens increased, according to Santiment data.
Since the 4th of July, the number of whales with 10,000,000 OP tokens and over has increased by 140%. However, to the dismay of investors, this did not result in any significant increase in the price of the asset.
While a number of OP holders continued to profit, the volume of profitable OP investments has decreased significantly since July 30th. The OP’s realized market capitalization (MVRV) then decreased from 4317% to 66.57% at press time.
Moreover, the continued decline in the asset’s price has lowered its weighted sentiment. It was pegged at -0.226 at the time of publication.