The Optimism (OP) cryptocurrency has declined significantly, reaching an all-time low. The drop followed news that Base, a major network built on Optimism’s technology stack, will migrate to its own system. This fundamental shift has triggered substantial selling and increased market volatility.
Optimism (OP) has posted heavy losses recently. The main driver of this price drop was a fundamental change in its network as an Ethereum Layer-2 solution.
Base announced it would be moving away from the OP stack and toward a unified Base-operated stack. This meant Optimism would lose a big chunk of its transaction activity and revenue.
The market sentiment was heavily against the L2 token. The Open Interest (OI) had surged by nearly 60% since the 18th of February, while prices fell 29.3%. Combined with high trading volume, it appeared there would be no respite from selling in the coming days.
Data from Coinalyze showed sizable long liquidations and spot trading volume spikes suggested a flurry of intense selling. It would be hard for the bulls to stop the downtrend of the past five months.
The rising OI has begun to stabilize, showing that the period of aggressive shorting was ending. Momentarily, OP has found some respite at the $0.127-$0.130 zone.
Yet, the altcoin was trading at an all-time low. There were no long-term supports further south that a bullish reaction is expected from. In the coming days, a bounce to $0.14-$0.16 to hunt short liquidations is a possibility that traders have to be prepared for.
