Optimism Token Sees Zero Optimism at Retrieving as Ethereum Scaling Solution

Optimism was supposed to be Ethereum's saviour, but it's killing ETH further

Even though Ethereum has grown to become one of the most powerful cryptocurrencies in the world, largely due to its unique smart contracts feature, it does not come without its drawbacks. Ethereum suffers from extensive scaling issues, along with the fact that its transaction fees are extremely high. The ETH developers have been trying several methods to make sure that investors gain the best trading experiences. But even after its popularity, crypto has consistently remained a critical subject when it comes to expensive gas fees. While the Ethereum community is waiting for ETH rollups to solve these issues and make Ethereum transactions faster and cheaper, Optimism has emerged as one such scaling solution for ETH that is not supposed to fail!

What is Optimism?

Optimism was developed to speed up ETH transactions and cut its costs by settling them on another blockchain using advanced data compression techniques. The technique involves optimistic rollups, where multiple transactions are rolled up into one single transaction, set on another blockchain, meanwhile reducing the gas fees. Ethereum users will be able to witness and process the transactions on the main network itself.

Recently, Optimism launched its own governance token and has plunged 40% since its inception. According to reports by Cointelegraph, the Ethereum layer-2 scaling solution was quite overwhelmed by the growing demands for the first OP governance token airdrop, since 5% of the token supply was already distributed among the 250,000 eligible users. Followed by this sharp drop in the value of the OP token, an Optimism community member who goes by the name 0xJohn has suggested several controversial remarks which are making things even worse than what they were. He identified a couple of wallets that sold their airdropped OP tokens for high prices, which has severely affected the token's launch. So, now it is hard to make out if Ethereum's scaling solution will be as effective or not, given the circumstances, it's most likely to plunge more!