Ethereum Layer 2 scaling resolution Optimism is rethinking its technique after years of serving to different initiatives construct networks on its know-how. Now the corporate’s chief govt, Jing Wang, says that strategy got here at a excessive value.
Optimism was designed to supply cheaper transactions simply as Ethereum skilled rising gasoline charges round 2020-2021. Its OP Stack software program has been used to launch chains like Coinbase’s Base and Kraken’s Ink, permitting them to construct their very own blockchains whereas remaining suitable with Ethereum.
However in an X submit on Nov. 27, Wang stated the crew “did an excessive amount of and targeted too little,” pointing to over-hiring and an absence of technique as market circumstances shifted. She stated the corporate has been “bathing in ways for a very long time” with associate chains, “with out constructing the working equipment to proceed that momentum right into a market that’s dramatically totally different right this moment.”
Though Optimism decreased prices by reducing workers and bringing all groups beneath one group, competitors from Solana, Stripe-backed Tempo, and different networks is getting harder, Wang stated.
Wang went on to tease a change in focus. Quite than simply serving to launch new chains, Optimism will let enterprises have extra management over their networks, although she didn’t say precisely how.
“On the finish of the day, enterprises need to management their very own economics. They are not gonna be sharecroppers on Stripe’s blockchain,” the Optimism CEO wrote.
Optimism didn’t instantly reply to The Defiant’s request for remark.
Falling On-Chain Metrics
Wang’s remarks come as Optimism’s key metrics proceed to weaken. The community’s complete worth locked has fallen again to 2022 ranges, in keeping with knowledge from DefiLlama.
OP Mainnet’s month-to-month income vs TVL. Supply: DefiLlama
Month-to-month on-chain income fell from about $2.3 million in March 2024 to roughly $373,000 in October, doubtless as a result of transaction charges dropped round 90% after Optimism’s Ecotone improve in Q1 2024.
The community’s OP token can be struggling. As of press time, OP is down greater than 85% over the previous 12 months and greater than 90% from its all-time excessive, per knowledge from The Defiant’s value web page.
