The crypto industry saw a rough start to May after witnessing a high 4 months bullish run. Amid these positive sentiments, Venture capital firm a16z reportedly bought huge amounts of Optimism’s native OP token. However, OP price dropped by more than 28% in the last 30 days.
Optimism gets a16z investment
According to reports, a16z invested around $90 million in Optimism by buying their OP tokens. The investment includes terms like a two-year vesting period. This shows growing institutional interest in Ethereum Layer 2 solutions.
Optimism price jumped by over 6.61% in the last 24 hours which has helped it to print the green index on the 7 days frame. OP price has seen a decline of 32% on the year to date (YTD) basis. Its 24 hour trading volume skyrocketed by a huge 104% to stand at $579 million. Its market cap stands at $2.63 billion.
OP price recent surge comes in when the global crypto market declined by over 5%. This pump came in the last 24 hours when Bitcoin (BTC) saw a 10% decline. BTC price dropped below the crucial $57,000 price level. Bitcoin is trading at an average price of $56,930, at the press time.
The report mentioned that Optimism’s stack allows developers to deploy their main nets using its open-source technology. It is important to note that the developers of the Celo blockchain chose OP Stack for their Layer 2 solution. This marks a major win for OP.
A16z spokesperson has commented on the OP token price surge, while, the Optimism community is enjoying the momentum.
What’s next?
This investment adds to a16z’s growing crypto portfolio. This fund also includes Coinbase’s Base which is an Ethereum Layer 2 solution. Both Base and Optimism compete for users on their respective tech stacks and have attracted major crypto projects.
Ethereum price has dropped by 11% in the last 7 days. However, ETH price is down by 5% over the last 24 hours. It is trading at an average price of $2,866, at the press time. Its 24 hour trading volume is up by 20% to stand at $18.7 billion.
In March, the Optimism Foundation disclosed the sale of approximately 19.5 million OP tokens worth nearly $90 million to an unidentified buyer. The terms and purchaser of the private sale were not disclosed at the time.