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Optimism (OP) Rockets More than 13% Amid Coinbase Layer 2 Launch

Optimism (OP), the main governance token for Ethereum layer-2 solution Optimism, has witnessed an explosive rally, pumping more than 13% in the last 24 hours after Coinbase (COIN) revealed it is building its layer 2 blockchain titled “Base”, in collaboration with Optimism.

This comes at a time when most of the digital tokens took a dive after the U.S. central bank’s Federal Open Market Committee (FOMC) released minutes signalling more hikes to tame inflation. Crypto heavyweights like Bitcoin (BTC) and Ethereum (ETH) are down 2.09% and 0.99%, respectively. Most of the top altcoins traded in red except a few. The global crypto market cap over the last 24 hours plummeted 1.35% to 1.09 trillion.

Why is Optimism Token Surging?

Despite the fall in the cryptocurrency market, Optimism (OP) zoomed past 15% over the past seven days.

Optimism (OP) Rockets More than 13%  Amid Coinbase Layer 2 Launch

As per Coinbase, “Base” will be powered by Optimism, and the company would be partnering with the decentralized autonomous organization (DAO) for open-source development on the OP stack. As per the official press release, Base will be the new home for the Coinbase’s on-chain products along with an open ecosystem for several new decentralized apps.

Furthermore, on February 23, Collab.Land, an automated management tool that integrates into Discord and Telegram for token-gated communities, announced to airdrop its token (COLLAB) on Optimism. Recently, the Optimism Foundation released a proposal to upgrade the Optimism mainnet to Bedrock, which is a new generation of decentralized Rollup architecture developed by Optimism Labs.

Optimism Sees Rapid Growth

Over the past year, the Ethereum-based scaling product has witnessed a massive growth in terms of adoption and activity. Optimism has enjoyed significant traction as it reduces the the transaction fee and transaction time on the Ethereum blockchain.

The total value locked (TVL) on Optimism has also seen substantial uptick last month. The network’s TVL jumped from $500 million on January 1 to $699 million on January 31, recording a whopping spike of nearly 40% in just a month. In addition, as per Etherscan, Optimism’s daily transaction volume hit an all-time high of 800,000 transactions on January 12.