Optimism (OP) surges 13% in 7 days despite prominent DeFi hack.

Optimism (OP) surges 13% in 7 days despite prominent DeFi hack.

The Rise of Optimism (OP) in the Blockchain Industry

In the ever-changing landscape of cryptocurrencies, Optimism (OP) has demonstrated remarkable resilience, experiencing a notable price increase of 13.53% in the past seven days. Although there has been a slight decline of 1.80% in the last 24 hours and a further 1.35% shrinkage within the hour, Optimism continues to show an overall upward trajectory[^1^]. Currently, with a price of $1.68 per OP, it remains 48.38% below its all-time high of $3.26[^1^].

Traders and investors are eager to understand the reasons behind Optimism’s recent gains and analyze its prospects. This article will explore the factors contributing to Optimism’s surge and provide insights into its future prospects.

_Image: Optimism (OP) price enjoyed a steady spike in the past week: Source @Tradingview_

High-Profile Hack Could Stall Optimism (OP) Bullish Trajectory

Optimism’s positive trajectory took an unexpected turn when Coinbase’s newly launched BASE network, built on the Optimism Stack, fell victim to a backdoor contract exploit. This unfortunate event resulted in the loss of 597 Ether, equivalent to approximately $1 million[^1^].

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The exploit involved infiltrating a backdoor contract on the BASE Chain, enabling the continuous minting of tokens that were subsequently sold for profit. The exploiters managed to mint 40 different tokens, generating significant profit, which was then moved out of the perpetrators’ address[^1^].

As BASE anchors the OP Stack, there are concerns that the recent exploit could have repercussions on all associated protocols, including the Optimism network. Additionally, the hype surrounding BASE had attracted several new addresses to the Optimism network, potentially dampening investor sentiment and impacting OP’s price[^1^].

The number of active addresses on the Optimism network had been increasing following BASE’s launch in late February. However, the recent hack may stall this growth as investors exercise caution in the wake of the exploit[^1^].

Will The Bulls Sustain The Impressive Rally?

Despite the recent BASE exploit, Optimism (OP) has managed to maintain a sense of optimism in the market. The OP/USD daily chart reveals promising signs of bullish momentum, with the bulls surpassing critical support levels. Short green candlesticks formed above the $1.631 support level indicate the market’s resilience and determination to keep the price afloat despite the challenges posed by the recent exploit[^1^].

Technical indicators further reinforce the bullish outlook for Optimism. The Moving Average Convergence/Divergence (MACD) remains above the signal line, characterized by green histogram bars signifying the asset’s bullish momentum. Additionally, the Relative Strength Index (RSI) has entered the overbought region, reaching a value of 75. This suggests a considerable increase in buying pressure on OP as investors show confidence in the token’s potential for future growth[^1^].

However, while the market sentiment remains positive, traders and investors must exercise caution. The recent BASE exploit has raised concerns about its potential impact on Optimism’s network and the broader sentiment surrounding the token.

The cryptocurrency market is infamous for its volatility, and external events can significantly influence token prices. Therefore, it is crucial for market participants to closely monitor developments related to the exploit and consider any potential consequences for Optimism’s price trajectory. Despite the positive indicators and bullish momentum, staying informed and vigilant in such a rapidly changing market is essential for making well-informed decisions[^1^].

(Note: This site’s content should not be construed as investment advice. Investing involves risk, and when you invest, your capital is subject to it.)

Featured image from iStock, chart from TradingView;

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