In the past month, the total value locked (TVL) for Optimism has grown tremendously. As per DefiLlama, a cryptocurrency data-analyzing firm, Optimism’s TVL has surged 284% in the past month.
Optimism’s 284% TVL Surge
Optimism is mainly known to be a scaling solution that operates through the Ethereum blockchain and it is based on the layer-2 protocol.
The TVL for Optimism has surged at a tremendous level. It has reportedly grown by 284%, which is quite promising for the protocol as “The Merge” is close to implementation.
According to statistics, the majority of the assets locked that make the TVL for Optimism are users’ borrowing and lending assets. These assets are available on Aave through the layer-2 chain offered by Optimism.
Ethereum Ecosystem Assets Gain from “The Merge”
Even before the implementation, The Merge has become the most discussed thing within the crypto-verse. Millions of followers of the Ethereum blockchain have been anxiously waiting for the implementation of The Merge.
The investors are aiming to benefit from The Merge just when it is implemented and the results start coming in. Therefore, the assets being offered within the Ethereum ecosystem are benefiting from highly-anticipated Hard Fork implementation.
Once the upgrade is implemented, it will completely change the orientation of the reward system on the Ethereum blockchain. The Ethereum blockchain will move from the proof of work (PoW) consensus protocol to the proof of stake (PoS) consensus protocol.
The Merge is to Take Place on September 19
Finally, after a long time and wait, the final date of implementation for “The Merge” has been made public.
The update has confirmed that the implementation of the upgrade has been scheduled for September 19. Over time, The Merge will be rolled out to the entire covered field via either rollups or computations through off-chain mediums.
Additionally, Optimism also wants to speed up the processing time and transactions.
With the implementation, they will be able to speed up the transactions as well as the of-chain computation services. Once a transaction is made using Optimism, it is recorded and such transactions stay there until they are finalized via Ethereum.
Multiple projects are already home to Optimism. To be exact, 35 protocols in total are currently home to Optimism. Even Velodrome, Uniswap, and Synthetix are home to Optimism.
The velodrome is an automated market maker, Uniswap is a decentralized exchange, and Synthetix is a derivatives exchange.
For now, the capability of the Ethereum blockchain is to handle 30 transactions per second. This is extremely low scalability for a protocol such as Ethereum.
However, the implementation of “The Merge” is to increase that scalability to 100,000 transactions per second. At the time of writing, the trading value of Optimism stands at $1.67 but with the implementation of “The Merge”, its trading price may rise significantly.