Inside Optimism’s [OP] new partnership, dwindling metrics, and more
Optimism [OP], over the last few weeks, lost its spotlight in the L2 space as Arbitrum’s [ARB] new AirDrop has taken all the attention. With increasing competition from other L2 chains, Optimism could lean on Coinbase [BASE] for assets to grow its ecosystem.
Read Optimism’s [OP] Price Prediction 2023-2024
In this partnership, Coinbase and Optimism will work together to launch the former’s L2 solution, known as Base, on the network. As a result, Coinbase has allocated a part of the sequencing fees collected by Base to Optimism’s Retroactive Public Goods Funding (RPGF).
<p lang=«en» dir=«ltr» xml:lang=«en»>.@Coinbase has already committed that it will allocate a percentage of sequencing fees to Retroactive Public Goods Funding.The future success of @optimismFND's RPGF will be dependent on private investments, network usage, and sequencer auction mechanics. pic.twitter.com/0SIvab1ZV6
— Messari (@MessariCrypto) April 2, 2023
The RPGF is a fund used by Optimism to further developments on its network. The assets allocated to the fund directly depend on the revenue generated by the Optimism protocol.
According to data provided by Artemis, the revenue generated by Optimism has been declining. Compared to other solutions, such as Polygon [MATIC] and Arbitrum, Optimism has also lagged behind in terms of revenue collection, which could be attributed to the protocol’s falling TVL.
According to Defi Llama, the TVL of Optimism declined from $989 million to $900 million over the last few days, indicating a drop in value stored on smart contracts on the network.
Source: Artemis
However, things could change for the protocol soon as the daily activity on Optimism has started to rise at press time. Accompanied by the rising daily activity, the
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