Optimism overtakes Arbitrum in key metric, but what of price action?

• OP’s daily active addresses have been increasing over the past few weeks. 
• Both OP and ARB’s weekly charts were in the red, but their Open Interest declined. 

Optimism [OP] and Arbitum [ARB], two of the most popular Ethereum [ETH] scaling solutions, have always been under scrutiny for their performances. However, there was an interesting development recently, as Optimism’s daily transactions surpassed Arbitrum after six months. 

Read Optimism’s [OP] Price Prediction 2023-24

Apart from transactions, a few other metrics also turned in OP’s favor. However, their network activity was not reflected in the price charts, as both OP and ARB’s values had declined over the last seven days. 

Optimism overtakes Arbitrum

As evident from Artemis’ data, after several months, Optimism’s number of daily transactions went above Arbitrum. This suggested increased usage of the solution.

Apart from that, OP’s daily active addresses also gained upward momentum. While OP’s active addresses rose, Arbitrum’s metric registered a decline, increasing the chances of OP overtaking ARB in the coming days. 

Source: Artemis

Thanks to the increase in network activity, the solution could increase its other key stats over the last few weeks. For instance, OP’s network fees increased, as did its revenue, surpassing Arbitrum.

However, Optimism still remained way behind Arbitrum in terms of TVL, which was evident from a look at Artemis’ chart. 

Source: Artemis

Optimism’s on-chain performance also looked better 

Santiment’s data revealed that ARB’s whale activity declined after registering a spike in mid-July. The opposite remained true for Optimism, as its whale activity increased.

The good news was that both OP and ARB token holders were confident in them as their total amount of holders increased last month. 

Source: Santiment

Both OP’s and ARB’s social dominance remained high last month. The metric revealed that both were equally popular in the crypto space. However, ARB’s weighted sentiment remained low while OP’s metric rose.

This suggested that while negative sentiment was dominant in the market for ARB, positive sentiment increased for OP. 

Source: Santiment

Though both solutions’ metrics were competitive and looked encouraging, they were not reflected in their price charts. While ARB’s price has declined by over 8% in the last seven days, OP’s value went down by over 3% last week.

Read Arbitrum’s [ARB] Price Prediction 2023-24

As per CoinMarketCap, at the time of writing, OP was trading at $1.47 and ARB was trading at $1.17. However, Coinglass’ chart pointed out a metric that suggested the possibility of both tokens turning bullish in the coming days.

Notably, the Open Interest of both ARB and OP has been declining. A drop in the metric usually means a trend reversal. Therefore, the chances of the tokens’ price going up were high. 

Source: Coinglass