In the rollercoaster world of cryptocurrencies, the ride for each digital coin can be wildly different. Recently, Optimism has witnessed a substantial decline from its February peak of $3 to its current standing at $1.55. Despite being in green, the trend leans towards bearish.
Conversely, DigiToads (TOADS), a rising star and multi-utility token, has demonstrated impressive growth, escalating from $0.01 to $0.05 within four months.
What drives these market trends, and what should we expect from each of these digital currencies?
What Is Optimism?
Optimism, a Layer 2 scaling solution for Ethereum, had initially garnered significant attention for its potential to address the scalability issues plaguing the Ethereum network. However, recent trends have shown a decrease in its value.
Token unlocks are integral to Optimism’s continuous approach to promoting decentralization, broadening its user community, and minimizing transaction fees. However, increased supply also naturally translates into decreased prices for tokens, which has been the case for Optimism’s recent weak performance.
Optimism underwent one of its most substantial token unlocks in May, with over 300 million tokens being released into circulation. This represented approximately 9% of the total OP supply – a significant influx into the market, particularly during a bearish phase.
In the hours preceding this substantial unlock, the price of OP initially fell by around 7%. The unlock then instigated further selling pressure, and by the end of the day, the digital asset had lost over 20% of its initial value.
The next token unlock occurred on June 30th, when an additional $34.5 million worth of tokens were released. This further intensified the selling pressure, leading to a series of negative price swings for OP. As a result, Optimism’s value has been on a downward trajectory, struggling to regain its value since then.
DigiToads, a deflationary and innovative utility meme coin, is designed to bring about positive change in its users’ lives across various aspects. Drawing inspiration from Toads and equipped with impressive features and practical applications, DigiToads is poised to emerge as a leading project in 2023.
The DigiToads ecosystem is a comprehensive platform that includes staking, Play-to-Earn (P2E) gaming, a metaverse, DAO Treasury, a TOAD NFT collection, and other services tailored to users’ interests. Holders of the platform’s native token, TOADS, will have the opportunity to participate in an engaging and immersive Web3 gaming environment, competing with other users in the swamp arena.
A critical distinction between TOADS and OP lies in their tokenomics. While Optimism has been consistently unlocking new tokens, increasing supply, DigiToads maintains a lower supply. Its total of 585 million tokens is continually reduced through an in-built token burn mechanism. With each TOADS transaction, 2% is automatically eliminated, enhancing the token’s scarcity and potentially boosting its value due to increased demand.
This unique idea, coupled with a wide range of utilities, has been broadly welcomed in the community, propelling $TOADS from $0.01 to $0.05 during the presale. This upward trend is expected to persist following its launch on exchanges.
Optimism’s strategy of continuous token unlocking presents certain investment risks due to increased supply and decreased value. Conversely, DigiToads’ deflationary approach and diverse ecosystem provide TOADS with a solid market position, enhancing its resilience to volatility and making it a promising investment. Therefore, since a few days remain before the end of the presale, the demand for the gem reaches new milestones each day.
The post As Optimism (OP) Decreases in Value, DigiToads (TOADS) Solidifies Its Presence in the Crypto Market appeared first on CoinChapter.