Which protocol left OP for mainnet?
Synthetix (SNX) has moved away from Optimism (OP) and relaunched its perpetuals decentralized exchange (DEX) directly on the Ethereum mainnet. This was confirmed in a public update in mid-December about the switch back to Layer 1 (L1) Synthetix mainnet relaunch.
- The team pointed to lower gas fees and upgrades on the Ethereum mainnet as reasons why building “critical infrastructure” there is now practical again Cointelegraph interview.
- Synthetix had originally moved from Ethereum mainnet to Optimism in 2022, and later expanded to other Layer 2 solutions like Arbitrum and Base Cointelegraph interview.
- The relaunch started as a limited beta with on-chain settlement and off-chain order matching to balance speed and security Synthetix mainnet relaunch.
Deep Dive
1. Confirmation
Synthetix officially announced it is back on the Ethereum mainnet with its perpetuals trading product. This marks a shift away from its previous focus on Layer 2 solutions like Optimism Synthetix mainnet relaunch.
The relaunch began with a small group of users in a beta phase, with limits on deposits and gradual feature rollouts. This cautious approach allows the team to carefully monitor how the system performs on-chain Synthetix mainnet relaunch.
2. Why Move Back
Founder Kain Warwick explained that the Ethereum mainnet is now capable of supporting complex trading platforms because gas fees have dropped significantly and scaling improvements have been made. This makes running efficient infrastructure on L1 possible again, something that was difficult during times of network congestion Cointelegraph interview.
The system uses off-chain order matching to speed up trading, while final settlement and custody happen on-chain. This setup keeps user funds secure on Ethereum while improving trade execution speed Synthetix mainnet relaunch.
What this means: If Ethereum mainnet fees stay low, some projects that need frequent settlement might move liquidity back to mainnet. Keeping an eye on gas prices and network capacity will be important going forward.
3. Prior Layer 2 Context
Synthetix moved from Ethereum mainnet to Optimism in 2022 because high gas fees made frequent trading too expensive. Later, they also expanded to other Layer 2 networks like Arbitrum and Base to reduce costs Cointelegraph interview.
Returning to mainnet suggests that the downsides of Layer 2 solutions—like fragmented liquidity and the complexity of moving assets between chains—can sometimes outweigh the savings on fees, especially when mainnet performance improves Synthetix mainnet relaunch.
Conclusion
Synthetix is the protocol that “left OP” to return to Ethereum mainnet, motivated by lower gas fees and better Layer 1 scaling. This move could signal a wider reevaluation of the trade-offs between Layer 2 and Layer 1 solutions as projects consider factors like custody, settlement security, speed, and liquidity concentration.
What could affect the price of OP?
Optimism is balancing between growing its ecosystem and managing inflation pressures on its token.
- Token Unlocks – In April 2025, 81 million OP tokens (worth about $22.8 million) will become available, which could lead to short-term selling pressure (Token Unlocks).
- Superchain Adoption – Networks like Base, Unichain, and enterprise blockchains using the OP Stack could increase demand for OP tokens.
- Ethereum ETF Momentum – Ethereum’s recent $102 million inflow shows strong institutional interest, which could benefit Layer 2 solutions like Optimism (Artemis).
Deep Dive
1. Inflationary Tokenomics (Potential Downside)
Overview:
Optimism has about 13.73% of its total 4.29 billion tokens reserved for future airdrops. In April 2025, 81 million OP tokens will unlock. Historically, similar unlock events, like the 31 million tokens released in July 2025, caused the price to drop 15-20% within two weeks.
What this means:
When new tokens enter the market, supply might outpace demand, especially during market downturns. However, Optimism supports its ecosystem with $2.6 million per month in RetroPGF grants to developers (Immunefi), which helps encourage growth and offset some of the token dilution.
2. Superchain Network Effects (Potential Upside)
Overview:
The OP Stack now supports over 50 blockchains, including Coinbase’s Base and Kraken’s Ink, handling around 24 million transactions daily. Since December 2025, the Jovian Hard Fork has enabled cross-chain atomic swaps through Hyperlane technology.
What this means:
Partner chains pay sequencer fees that are shared with Optimism, creating ongoing demand for OP tokens. For example, Base generates about $1.2 million in weekly revenue. If Optimism receives a 10% share of these fees, that could translate to $6.2 million in annual demand for OP (L2Beat).
3. Ethereum Macro Dependency (Mixed Effects)
Overview:
OP’s price moves closely with Ethereum, showing a 0.89 correlation. Ethereum’s recent $102 million inflow (as of December 19) indicates strong market interest. However, competition among Layer 2 solutions is increasing, with projects like Synthetix returning to mainnet.
What this means:
Ethereum’s success generally benefits all Layer 2 networks, but Optimism needs to stay competitive against rivals like Arbitrum and ZkSync. The recent 90% fee reduction thanks to EIP-4844 adoption is a positive step. Still, decentralized finance (DeFi) platforms like Velodrome must keep users engaged after migrating to Optimism.
Conclusion
Optimism’s future depends on whether adoption of its Superchain network can outpace the inflation caused by token unlocks. Keep an eye on the OP/BTC trading pair—a sustained rise above 0.000012 BTC (compared to 0.0000098 BTC on December 19) could indicate growing interest in altcoins. The key question is whether Optimism’s governance improvements will attract enough developers to balance out its token emissions.
What are people saying about OP?
The Optimism (OP) community is feeling a mix of cautious hope and some selling pressure. Here’s the latest:
- Traders are watching the $0.22–$0.24 range as important support levels.
- Growth in the ecosystem is expected as ETH funds are being used to boost activity.
- Meme coin spin-offs on Solana are gaining some attention.
Deep Dive
1. @Finora_EN: Bearish Trend Testing Key Support
“$OP is still in a downtrend but is testing important support around $0.2676. If it breaks, the price could drop to $0.24.”
– @Finora_EN (5,557 followers · 62,328 impressions · 2025-12-18 12:41 UTC)
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What this means: In the short term, the outlook is negative. If the price falls below $0.2676, it could lead to panic selling. However, if it holds, it might mark a temporary low.
2. @Optimism: Using Treasury Funds to Boost DeFi
“We’re inviting proposals to use 21,500 ETH to help grow decentralized finance (DeFi) on the OP Mainnet.”
– @Optimism (Official account · 2025-10-29 19:37 UTC)
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What this means: This is a positive sign for the long term. Using ETH funds strategically could attract new projects and users, though there are risks in how well this plan is carried out.
3. @GmGnSolTrending: Meme Coin Buzz on Solana
“A new Optimism-themed meme coin on Solana has a market cap of $7,600 and 94 holders. Developer warns: 🚨 Sell All.”
– @GmGnSolTrending (789 followers · 5,866 impressions · 2025-12-18 20:10 UTC)
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What this means: This is mostly neutral to negative. While it shows some brand interest, speculative meme coins can distract from Optimism’s main goals.
Conclusion
The overall view on Optimism is mixed. Technical indicators suggest some weakness, but efforts to grow the ecosystem are ongoing. Large holders are accumulating, and the team is pushing incentives for DeFi growth. However, price movements are still influenced by Bitcoin’s dominance (currently 58.89%) and low activity on Layer 2 networks. Keep an eye on the $0.24–$0.26 support zone and how the ETH treasury funds are used to get a better sense of where things are headed.
What is the latest news about OP?
Optimism is adapting to changes in its ecosystem and token supply as important updates unfold. Here’s the latest news:
- Synthetix Moves Back to Ethereum Mainnet (December 18, 2025) – This reduces Optimism’s role in decentralized finance (DeFi) on Layer 2 (L2) networks.
- Token Unlocks and Supply Management (December 18, 2025) – Although up to 30% new tokens are unlocked, strong network usage helps balance supply and demand.
- Ripple’s RLUSD Stablecoin Launches on Optimism (December 18, 2025) – Cross-chain integration boosts liquidity and opens doors for traditional finance involvement.
Deep Dive
1. Synthetix Moves Back to Ethereum Mainnet (December 18, 2025)
Overview:
Synthetix, a leading platform for perpetual trading, announced it is moving back to the Ethereum mainnet after three years on Optimism and other Layer 2 solutions. The founder, Kain Warwick, explained that Ethereum’s improved scalability—gas fees have dropped 26 times year-over-year to about 0.71 gwei—and combined upgrades on both Ethereum’s mainnet (Layer 1) and Layer 2 networks now support running critical infrastructure directly on Ethereum.
What this means:
This development is somewhat negative for Optimism in the short term because it means fewer high-frequency DeFi applications will rely exclusively on Layer 2 networks like Optimism. However, Synthetix’s move might push Optimism to focus more on broad scalability and interoperability with other blockchains, which fits with its 2026 plans for a “Superchain” network. (Cointelegraph)
2. Token Unlocks and Supply Management (December 18, 2025)
Overview:
An analysis from CryptoNewsLand shows that despite up to 30% of new OP tokens being unlocked, Optimism’s strong transaction volume and active developer community help absorb this increased supply. The network handles around 24 million transactions daily, supported by 352 protocols including popular platforms like Uniswap and Aave, which drives demand for OP tokens.
What this means:
This is a neutral sign for Optimism. While new tokens entering the market could create selling pressure, the growing use of the network balances this out. Still, ongoing developer engagement is crucial—if interest slows, Optimism could face inflation risks, especially given its $547 million market cap and a 65% drop in value over the past 90 days. (CryptoNewsLand)
3. Ripple’s RLUSD Stablecoin Launches on Optimism (December 18, 2025)
Overview:
Ripple’s regulated stablecoin, RLUSD, which has a $1 billion market cap, is now available on Optimism through Wormhole’s cross-chain technology. This allows smooth transfers between Base, Ethereum, and Optimism blockchains. The integration is aimed at institutional DeFi users, with major funds like BlackRock and VanEck using RLUSD for settlements.
What this means:
This is a positive development for Optimism. RLUSD’s focus on regulatory compliance could attract traditional financial institutions to the Optimism ecosystem. This move strengthens Optimism’s position in the competitive stablecoin infrastructure space, especially against rivals like Arbitrum and Polygon. (Coin Edition)
Conclusion
Optimism is facing mixed signals. Synthetix’s return to Ethereum challenges its dominance in DeFi, but the adoption of RLUSD and the network’s ability to handle token supply show promise for long-term growth. The big question is whether Optimism’s upcoming Superchain upgrades and Ethereum’s Dencun hardfork in 2026 will boost its usefulness—or if increased competition among Layer 2 networks will weaken its value.
What is expected in the development of OP?
Optimism is focusing on improving governance, making different blockchains work together, and attracting businesses in 2026.
- Interop Layer Launch (Early 2026) – Enables smooth communication and shared security between OP Chains.
- Season 8 Governance Expansion (Ongoing) – Introduces automatic approval for simple proposals and better stakeholder representation.
- Enterprise Yield Partnerships (2026) – Brings institutional DeFi products to the OP Mainnet.
Deep Dive
1. Interop Layer Launch (Early 2026)
Overview:
The Interop Layer is part of Optimism’s Superchain plan to let different OP Chains (like Base and Zora) communicate directly using a new bridging standard called ERC-7802. It also includes shared security features to protect these chains (Optimism Governance Forum). This follows an upgrade in October 2025 that made the system more modular and easier to manage.
What this means:
This is a positive development for Optimism because it makes the ecosystem more connected, which can attract more developers and users. However, delays in security checks or challenges for smaller chains to join could slow progress.
2. Season 8 Governance Expansion (Ongoing)
Overview:
Since August 2025, Optimism’s governance has been updated to automatically approve straightforward proposals unless stakeholders object within 7 days. It also created four groups representing token holders, users, apps, and chains to better balance decision-making (CoinMarketCap).
What this means:
This change reduces delays in decision-making but gives more influence to OP token holders. It’s important to watch voter participation because low turnout could affect how legitimate the governance feels.
3. Enterprise Yield Partnerships (2026)
Overview:
Optimism is partnering with Morpho Labs and Gauntlet to offer advanced yield products for institutions on its main network. These include USDC Prime Vaults and lending pools designed to manage risk (Optimism X post).
What this means:
This move aims to grow the total value locked (TVL) by attracting traditional finance players. Its success depends on clear regulations for DeFi and competitive fees compared to other Layer 2 solutions like Arbitrum and Polygon.
Conclusion
Optimism’s 2026 plans focus on expanding its ecosystem through better interoperability and reaching institutional users, while streamlining governance for faster decisions. The key question is whether its modular Superchain design can outperform competitors like Arbitrum in drawing enterprise activity.
What updates are there in the OP code base?
Optimism’s latest updates focus on making the platform more scalable for businesses, improving communication between different blockchains, and speeding up transactions.
- Enterprise Yield Stack (October 30, 2025) – Added advanced DeFi tools designed for institutions, partnering with Morpho and Gauntlet.
- Superchain Upgrade 16a (October 8, 2025) – Introduced custom gas tokens and prepared the system for cross-chain messaging.
- Flashblocks Upgrade (September 30, 2025) – Cut block times from 2 seconds down to 250 milliseconds.
Deep Dive
1. Enterprise Yield Stack (October 30, 2025)
What happened: Optimism integrated new DeFi (decentralized finance) tools aimed at institutional users. This includes Gauntlet’s risk-managed vaults and Morpho’s efficient lending protocols. These tools are now built directly into the OP Mainnet using smart contracts that have been carefully audited to reduce risks.
Why it matters: This update makes Optimism more attractive to large financial players by offering safer and more flexible investment options. It could lead to more money flowing into the platform, boosting its overall value and use.
(Source)
2. Superchain Upgrade 16a (October 8, 2025)
What happened: Developers received better tools, including new contracts that follow the ERC-7802 standard for bridging assets between blockchains. The gas limit (which controls how much work can be done per block) was increased by 150%, from 200 million to 500 million. New features like ETHLockbox (for managing wrapped assets) and custom fee tokens were added, with options to turn them on or off.
Why it matters: This upgrade improves flexibility for projects built on Optimism but requires developers to review their existing contracts carefully. The higher gas limit supports more complex applications but might delay fee reductions until demand stabilizes.
(Source)
3. Flashblocks Upgrade (September 30, 2025)
What happened: Optimism drastically reduced the time it takes to finalize a block—from 2 seconds to just 250 milliseconds—by separating transaction execution from the main Ethereum settlement process. This means users experience near-instant transaction speeds, especially useful for trading and gaming apps. The upgrade also added stricter backup requirements for the network’s sequencers to maintain security.
Why it matters: Faster block times make Optimism competitive with high-speed platforms like Solana and Visa, while still being compatible with Ethereum’s technology. Early users like Uniswap V4 saw a 22% drop in failed arbitrage trades after this upgrade.
(Source)
Conclusion
Optimism is evolving to better serve businesses and handle much higher transaction volumes, all while staying connected to Ethereum’s network. These upgrades strengthen its position as a leading Layer 2 solution, but the challenge remains: can Optimism keep its network decentralized as the system’s complexity and validator demands increase?
Why did the price of OP go up?
Optimism (OP) increased by 7.23% in the last 24 hours, outperforming the overall crypto market, which rose 3.74%. This growth is driven by strong activity in the Ethereum ecosystem, balanced token unlocks, and technical signals suggesting a potential price rebound.
- Ethereum Layer 2 Activity Boost – Synthetix’s move back to Ethereum’s main network highlights the usefulness of Layer 2 solutions like Optimism.
- Token Unlock Stability – New token releases are balanced by high network usage and active development.
- Technical Recovery Signs – Indicators show the token was oversold, encouraging buyers to step in.
Deep Dive
1. Ethereum Ecosystem Momentum (Positive Influence)
Overview: Optimism’s price increase matches a $102.4 million net inflow into Ethereum and Synthetix’s return to Ethereum’s mainnet after three years. Although Synthetix is now on the mainnet, its founder Kain Warwick points out that scaling solutions combining Ethereum’s mainnet (Layer 1) and Layer 2 technologies like Optimism’s OP Stack are still essential for fast, efficient decentralized finance (DeFi) operations.
What this means: Renewed interest from institutions in Ethereum is benefiting Layer 2 networks like Optimism, which handled 10% of Ethereum’s transactions in the last quarter of 2025. Ethereum is increasingly seen as a “modular ecosystem,” where Layer 2 solutions manage scaling, making OP more valuable.
What to watch: Ethereum’s proposed gas limit increase for 2026 could allow more transactions and push more users toward cost-effective Layer 2 networks like Optimism.
2. Token Unlock Dynamics (Mixed Impact)
Overview: Optimism is set to unlock 31.34 million OP tokens on December 31, representing 1.65% of the total supply. However, recent data shows that these new tokens are being absorbed by strong network usage. Optimism supports 352 protocols, including popular platforms like Uniswap and Aave, with daily transactions reaching 14 million after the Ecotone upgrade.
What this means: Unlike tokens that face selling pressure after unlocks, OP’s new tokens are matched by real demand, supported by a total value locked (TVL) of $301 million. The market’s Fear & Greed Index is at 21, indicating “Extreme Fear,” which tends to reduce panic selling and helps balance supply and demand.
3. Technical Rebound (Neutral Impact)
Overview: The Relative Strength Index (RSI) for OP improved from 23.56 (oversold) to 32.73, and the price moved above the 7-day simple moving average (SMA) of $0.2919. Although the Moving Average Convergence Divergence (MACD) remains bearish, trading volume over 24 hours jumped to $83.9 million, an 18% increase compared to the 7-day average.
What this means: Traders took advantage of oversold conditions to buy OP, but the overall downward trend over the past 30 days (-25.31%) limits strong bullish confidence. The $0.28 price level now serves as immediate support.
Conclusion
Optimism’s recent price increase reflects renewed institutional interest in Ethereum, manageable token unlocks, and technical buying signals. However, OP is still trading 65% below its 90-day high, meaning it needs continued growth in its ecosystem to sustain momentum.
Key watch: Will OP maintain levels above the 200-day exponential moving average (EMA) at $0.5766 if Ethereum’s ETF inflows pick up?