Optimism’s native token OP witnessed a sharp decline of 10% during intraday trading on August 17. The decline came as a result of a flurry of rumors that Optimism’s multi-signature wallet had been hacked.
When you decide to move $450 million up the chain without telling anyone why pic.twitter.com/l6lCkBUt8H
— foobar (@0xfoobar) 17 August 2022
The hack scare happened after the L2 blockchain’s multi-signature wallet published a suspicious move on the chain.
Earlier in June, Optimism lost 20 million OP tokens due to a error between multi-signature addresses.
Considering the seriousness of the situation, Optimism immediately took off Twitter on the evening of August 17 to debunk the rumor.
The tweet explained to users that the OP transfers from the multi-signature address were a series of planned transfers to the Coinbase Custody wallets.
We see some confusion about recent transfers of OP from a multisig. This is expected – today we performed a series of scheduled default transfers to the Coinbase Custody wallets of various investors in OP Labs PBC.
— Optimism (✨🔴_🔴✨) (@optimismFND) 17 August 2022
As soon as Optimism clarified the misunderstanding, the OP token managed to show some recovery. But was it enough?
Are you still having a hard time?
After the rapid 10% drop in the price of the OP token on August 17, the price corrected to its initial position after Optimism debunked the rumor and assured investors of the safety of their fund.
However, data from CoinMarketCap revealed a consistent decline in the price of the token over the past two days.
At the time of writing, it was trading at $1.18, down 11% since the August 12 hacking scare.
In addition, the price of the token has decreased by over 30% in August. This decline came after the bull run in July that saw the token rise by 60%.
Things were not looking good for the OP on a daily chart. In the last 24 hours, the price has fallen by 12%.
Currently, exchanging hands at the June level, the token’s price was down 73.98% from its all-time high of $4.57.
With buying pressure easing, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) were spotted in a downtrend below the 50-neutral region.
At the time of writing, the RSI and MFI were 40 and 33 respectively.
Moving Average Convergence Divergence (MACD) also revealed that a new bear cycle for the OP token started on August 9.
A further price drop should therefore be expected.
It’s all downhill
Data from Token Terminal revealed that L2 Blockchain had seen a decrease in its daily income over the past seven days.
As of August 17, Optimism recorded a daily revenue of $18,000, representing a 12% decrease over the past seven days.
Over the past three months, daily earnings on the network have decreased by 36.7%. After recording a record daily earnings of $492,000 on May 12, earnings on the network have since declined.
Furthermore, the cumulative income on the network since February 23 has stood at 9 million dollars. This represented a revenue gap of 25% from the $12 million that Arbitrum made in the same period.