Optimism (OP), a Layer-2 network for Ethereum, has continued its market recovery in recent days, recording a 5.57% increase in the past 24 hours, according to data from CoinMarketCap.
Since reaching the price level of $1.31, Optimism has been on an upward trend and is expected to return to the high price levels seen in early August.
Optimism: Large investors increase their holdings by 300% in the past year
In addition to many positive aspects for Optimism, the on-chain analytics company Santiment has also announced another significant development regarding investor interest in the altcoin.
According to a report by Santiment on August 21, whale and shark addresses holding between 100,000 and 10,000,000 OP have consistently increased their holdings in the past 12 months.
The analysis team reported that these investors currently hold 505.91 million OP, worth around $781.9 million. Notably, this share accounts for a significant 69.6% of Optimism’s total market share.
In addition to this investment growth, Santiment also noted that Optimism recorded 22,900 active addresses on Monday, the fifth-highest value for the metric in 2023.
Behind the growing trend of OP accumulation
In line with Santiment’s report on the increasing OP accumulation by Optimism’s major investors, Spot On Chain, another blockchain analytics platform, has recently provided further insights into this trend.
According to a blog post by Spot On Chain, address 0x011, suspected to belong to popular venture capital firm Amber Group, has purchased 3.73 million OP worth $5.71 million from Binance in the past 24 hours.
The analysis team states that this particular address has accumulated 8.14 million OP worth $12.7 million in the past 19 days.
Interestingly, Spot On Chain suggests that the recent accumulation of OP could be due to the upcoming Ethereum Cancun/Deneb upgrade.
In June, Christine Kim, Vice President of the research team at Galaxy Digital, stated that an upcoming network upgrade planned for the second half of 2023 could increase the network capacity of Layer-2 solutions like Arbitrum and Optimism by a hundredfold.
At the time of writing this article, Optimism is trading at $1.56, with a 0.29% decrease in the past hour. However, the token’s trading volume has increased by 54.83% in the past 24 hours, estimated at $137.08 million.
These are exciting developments for Optimism as it continues to gain momentum and attract the attention of large investors in the crypto space. The future looks promising for this Layer-2 network as it strives to improve scalability and efficiency on the Ethereum blockchain.
