Optimism Network Full Analysis: Ecosystem Progress, OP Token Model, and Future Outlook

On December 18, Gate market data showed that OP (Optimism Network) is now trading at about $0.26, down about 2% in the past 24 hours, reaching an intraday high of $0.287 and a low of $0.255, with a 24-hour turnover of about $2.18 million. Compared to the all-time high of about $4.8, OP’s current price has fallen by about 94%.

Faced with this price fluctuation, many users are starting to rethink the question: what exactly is Optimism Network? Where has its ecology come? How does OP’s economic model work? And what are the future development prospects? This article will explain them one by one.

1. What is Optimism Network?

Optimism Network (OP) is one of the Layer 2 scaling solutions built on Ethereum, using Optimistic Rollup technology, which allows transactions to be processed outside the Ethereum main chain, but is still ultimately confirmed and secured by the Ethereum main chain.

Its core value lies in solving two pain points on Ethereum’s native chain:

• High Gas Fees: Higher costs for operating directly on the Ethereum main chain;
• Low Throughput: The processing rate of the main chain is limited, making it difficult to support large-scale applications.

Optimism enables faster and lower-cost transactions by “packing” a large number of transactions into Layer 2 and then periodically submitting state to the Ethereum main chain.

2. Optimism ecological development status

As one of the earliest L2 solutions to emerge and widely recognized by the community, Optimism’s ecological development can be observed from the following dimensions:

1. Number of applications and protocols

Optimism gathers a certain number of decentralized applications (DApps), covering the following main types:

• DeFi protocols: products such as lending, AMM, and yield aggregation are deployed on OP.
• NFT and Metaverse Ecosystem: Some NFT marketplaces and creator tools are also being explored and implemented on OP;
• Infrastructure services: Bridging, analysis tools, cross-chain services, etc. further improve the ecological structure.

Through these application combinations, Optimism’s ecosystem activity has been high in certain time periods.

2. Ecological TVL and number of users

As of now (end 2025), Optimism remains at the forefront of Layer 2 in terms of total value locked (TVL) and the number of active users on the chain, but it has seen a significant decline compared to the peak of the market, which is in line with the downward trend of overall DeFi market activity.

At the same time, other L2 solutions (such as Arbitrum and zkSync) are developing rapidly among different user and project groups, diverting some ecological traffic.

3. Community and developer ecosystem

The Optimism ecosystem has a certain developer and community base, and has a practical governance framework, such as the governance proposal of the OP token and the support of the ecosystem fund for Project Catalyst, which reserves an institutionalized growth path for long-term development.

3. Analysis of the OP token economic model

To understand OP’s price changes, we need to review its tokenomics design and incentive mechanism.

1. OP’s positioning

OP is the native governance token in the Optimism ecosystem, which not only carries community governance rights, but also assumes the functions of incentive distribution and ecological incentives.

Core uses include:

• Governance participation: Holders can vote on ecological proposals, including fund allocation, rule adjustments, etc.
• Ecosystem Incentives: Distribute incentives to liquidity providers, developer teams, and user activities.
• Future protocol fund allocation: As part of governance collateral or incentive sources for ecological projects.

2. Incentive mechanism and deflationary characteristics

Optimism launched a more generous incentive program in the early days, aiming to attract projects and users to the ecosystem. Over time, some incentives are distributed and consumed, and the ecosystem begins to adjust in the direction of “sustainable incentives + return of governance rights to the community”.

This means that OP’s supply rhythm and incentive strategy have changed in stages:

• Higher initial incentives → attract traffic that joins quickly
• Medium-term gradual adjustment → Focus on long-term ecological health
• In the later stage, more emphasis is placed on governance participation and value return

Under this economic model, the price of OP is no longer entirely driven by short-term transactions, but is more dependent on ecological use, governance participation, and long-term incentive frameworks.

4. Why has OP prices fallen for a long time?

Comparing historical prices with current trends, OP prices have fallen nearly 94% from their highs, which can be understood from the following variables:

1. The overall crypto market is periodically adjusted

In 2025, the overall market activity will decrease compared with previous cycles, and capital, sentiment and liquidity will fluctuate significantly in stages. When market risk appetite declines, high-beta assets (such as Layer 2 native tokens) tend to feel the selling pressure first.

2. Incentive decline and token release rhythm

Optimism’s early incentives include a large number of token distributions to attract project deployment and user participation. As incentives gradually decrease, the purchase demand for OP in the market has not continued to expand, and the supply is still being released but the demand has not grown synchronously, causing downward pressure on prices.

3. L2 competition intensifies

Other Layer 2 solutions such as Arbitrum and zkSync have competitive advantages in terms of different user groups, application ecosystems, and incentive strategies. Some projects and users migrated from Optimism or deployed in parallel, causing OPs to face pressure on ecological activity.

4. Ecological utilization rate and lock-up decline

Although OP is still active at the governance level, its actual performance in diversified ecological uses such as DeFi, NFT, and cross-chain has not been sustained, resulting in insufficient pull at the on-chain demand level.

5. Advantages and challenges of Optimism

Looking at the current ecosystem and market, Optimism still has the following advantages:

Core strengths

• Strong governance framework: Institutional design with governance as the core allows ecological participants to have a higher voice.
• Early Ecological Layout: Entered the Layer 2 track early and accumulated a relatively complete DApp distribution.
• Deep Synergy with Ethereum: Optimism aligns with the Ethereum main chain design philosophy, making it easy to migrate and compatible with EVM assets.
• Clear ecological incentive path: Governance funds and ecological support mechanisms provide the foundation for long-term project accumulation.

Challenges

• High competitive pressure: Other L2s (such as Arbitrum, zkSync) are rapidly evolving in terms of technical routes, product experience, and capital attraction;
• Difficult to adjust incentive balance: How to smoothly transition from “incentive-driven traffic” to “use-driven growth” is the core variable of long-term development.
• Ecological pricing pressure: As the market matures, the marginal effect of tokenization incentives gradually weakens, and prices are more driven by fundamentals.

6. Future development trend prospects

Looking ahead, Optimism is likely to evolve further in the following directions:

1. Deeper cross-chain and multi-chain collaboration

As cross-chain infrastructure evolves, Optimism is no longer limited to a single L2 but may place more emphasis on linkage with other chains and asset interoperability.

2. Enhance eco-practical products

Higher-level DeFi, derivatives, automated strategies, and smart contract tools are expected to become a new force in ecological growth.

3. Optimization of governance and autonomy mechanisms

Improved governance participation and more refined management of ecological funds will help enhance community cohesion and provide basic support for long-term value.

4. Institutional level engagement

As institutional understanding and acceptance of Layer 2 assets improves, OP is expected to benefit from medium- to long-term allocation needs.

Summary

The sharp correction in OP’s current price is mainly the result of a combination of market cycles, incentive cadence, and competitive conditions. This phased decline does not mean that Optimism has lost its value, but is transitioning from a “period of accelerated growth” to “mature and steady development”. In this process, ecological construction, governance incentives, and fundamental utilization rates will be more worthy of attention than short-term prices.

For long-term participants and ecosystem observers, understanding Optimism’s value lies not just in its price but in its unique positioning as an EVM-compatible Layer 2 in the Ethereum scaling ecosystem.