In the midst of the ever-changing cryptocurrency landscape, Optimism (OP) has shown remarkable resilience, posting a notable price increase of 13.53% in the past seven days. Despite facing a slight decline of 1.80% in the last 24 hours and a further 1.35% shrinkage within the hour, Optimism remains on an upward trajectory.
With the current price sitting at $1.68 per OP and still 48.38% below its all-time high of $3.26, traders and investors are eager to uncover the reasons behind its recent gains. This article explores the factors contributing to Optimism’s recent surge and analyzes its prospects.
High Profile Hack Could Stall Optimism (OP) Bullish Trajectory
Optimism’s positive trajectory took an unexpected turn when Coinbase’s newly launched BASE network, built on the Optimism Stack, fell victim to a backdoor contract exploit. This unfortunate event resulted in the loss of 597 Ether, equivalent to approximately $1 million.
The exploit involved infiltrating a backdoor contract on the BASE Chain, which enabled the continuous minting of tokens that were subsequently sold for profit. The exploiters managed to mint 40 different tokens, generating significant profit, which was then moved out of the perpetrators’ address.
Related Reading: Curve Finance Exploiter Returns 61,000 ETH After Protocol’s Stern Warning
As BASE anchors the OP Stack, there are concerns that the recent exploit could have repercussions on all associated protocols, including the Optimism network. Furthermore, the hype surrounding BASE had attracted several new addresses to the Optimism network, potentially dampening investor sentiment and a subsequent impact on OP’s price.
The number of active addresses on the Optimism network increased following BASE’s launch in late February. However, the recent hack may stall this growth, as investors might exercise caution in the wake of the exploit.
Will The Bulls Sustain The Impressive Rally?
Despite the recent BASE exploit, Optimism (OP) has managed to maintain a sense of optimism in the market. The OP/USD daily chart displays promising signs of bullish momentum, with the bulls surpassing critical support levels. Short green candlesticks formed above the $1.631 support level indicate the market’s resilience and determination to keep the price afloat despite the challenges posed by the recent exploit.
The technical…
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