Optimism’s native token OP witnessed a pointy decline of 10% through the intraday buying and selling session on 17 August. The decline got here because of a bunch of rumors that Optimism’s multisignature pockets had been hacked.
Whenever you resolve to maneuver $450 million onchain with out telling anyone why pic.twitter.com/l6lCkBUt8H
— foobar (@0xfoobar) August 17, 2022
The hack scare occurred after the L2 blockchain’s multisignature pockets posted a suspicious transfer on the chain.
Earlier in June, Optimism misplaced 20 million OP tokens on account of an error between multisignature addresses.
Contemplating the gravity of the scenario, Optimism instantly took to Twitter on the night of 17 August to debunk the rumor.
The tweet defined to its customers that the OP transfers out of the multisignature handle have been a sequence of scheduled transfers made to the Coinbase Custody wallets.
We’re seeing some confusion about current transfers of OP out of a multisig. That is anticipated—as we speak we executed a sequence of deliberate customary transfers to the Coinbase Custody wallets of assorted traders in OP Labs PBC.
— Optimism (✨?_?✨) (@optimismFND) August 17, 2022
As quickly as Optimism clarified the misunderstanding, the OP token did handle to point out some restoration. However was that sufficient?
Nonetheless having a troublesome time?
Following the fast 10% decline within the worth of the OP token on 17 August, the worth corrected to its preliminary place after Optimism debunked the rumor and warranted traders of the protection of their funds.
Nonetheless, information from CoinMarketCap revealed a constant decline within the worth of the token previously two days.
As of this writing, it traded at $1.18, dropping by 11% because the hacking scare of 12 August.
Moreover, the worth of the token has gone down by over 30% in August. This decline got here after the bull run in July that precipitated the token to rally by 60%.
Issues didn’t look good for OP on a day by day chart. Within the final 24 hours, its worth was down by 12%.
Presently, exchanging palms at its June degree, the token’s worth was down 73.98% from its all-time excessive of $4.57.
With waning shopping for stress, the token’s Relative Power Index (RSI) and Cash Stream Index (MFI) have been noticed in a downtrend beneath the 50-neutral area.
As of this writing, the RSI and MFI have been 40 and 33, respectively.
The Transferring Common Convergence Divergence (MACD) additionally revealed {that a} new bear cycle for the OP token commenced on 9 August.
Subsequently, an additional worth decline needs to be anticipated.
Supply: TradingView
It’s all downhill
Information from Token Terminal revealed that the L2 Blockchain had seen a decline in its day by day income within the final seven days.
As of 17 August, Optimism registered a day by day income of $18,000, representing a 12% decline within the final seven days.
Prior to now three months, day by day income on the community declined by 36.7%. After logging an all-time excessive day by day income of $492,000 on 12 Could, income on the community has since declined.
Supply: Token Terminal
Moreover, the cumulated income on the community since 23 February has stood at $9 million. This represented a 25% income hole from the $12 million made by Arbitrum throughout the identical interval.
Supply: Token Terminal
