Optimism’s OP token sheds 9% of value

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Optimism’s OP token sheds 9% of value

Optimism s OP token shed more than 9% of its value in the last 24 hours after the team made an unannounced transfer of $450 million worth of the token from its multi-signature wallet.

The initial rumors were that the network's Layer 2 had been hacked.

The transfers were planned for standard transfers to the Coinbase Custody wallets of various investors in the OP Labs PBC. The price of the OP fell to as low as $1.29 before rebounding to its current value of $1.35 at press time.

The token transfer was not announced by the Optimism team.

The communication void resulted in the community trying to figure out if something was wrong, according to rotkiapp founder Lefteris Karapetsas. Another community member said that Optimism's team was not announcing the important things, adding that he hasn't seen a team so disorganized and uncommunicative with its community. Some have implied that the Optimism team shorted the token.

The total value of assets locked in Optimism is currently over $1 billion, up over 280% in the last 30 days, according to DeFiLlama data.

The amount of DAI on the network went from $30 million to $140 million within a few days, according to MakerDAO MKR.

The Layer 2 network houses 35 projects like DeFi protocol Aave AAVE derivatives exchange Synthetix SNX and the automated market maker Velodrome - these four protocols account for 87% of the Optimism s TVL.

Aave has the highest volume with $538.4 million worth of assets locked on Optimism, followed by Synthetix with $204 million.

Optimism also joined DeFi protocols like Iron Bank, Yearn Finance YFI and Homora on August 16.

The new protocols were reported to have joined the Layer 2 network to improve their security and capital efficiency.