On-chain activity on Optimism drops after end of NFT incentive program

On-chain activity on Optimism drops after end of NFT incentive program

Following a significant spike earlier, transaction volumes on Optimism, an Ethereum scaling solution, have dropped by 70%. According to data from blockchain explorer Blockscan, daily transactions have dropped to 238,000 from a peak of nearly 800,000 on Jan. 12.

The drop in activity coincided with the end of the Optimism Quest incentive program, which aimed to increase user engagement and educate users about the Optimism Layer 2 network.

According to a recent report by The Block Research, the surge in on-chain activity during Quest was linked to Optimism team speculation about a second airdrop.

Airdrop Optimism

Optimism announced an airdrop, a free token giveaway for early users, in April 2022, with amounts ranging from $500 to $10,000 per user. The team also mentioned a second, larger airdrop, but no additional information was provided.

This sparked speculation among users that completing tasks during the Optimism Quest program, which rewarded participants with non-fungible tokens (NFTs), would qualify them for the airdrop.

During the four-month Quest program, 450,000 wallets earned over 3.4 million NFTs after completing tasks involving decentralized apps in the Optimism ecosystem, according to on-chain data. Galxe, an on-chain credentials framework, was used to power the program.

Odyssey, a similar NFT programme on Optimism’s closest competitor, Arbitrum, had been instrumental in increasing the amount of activity on the network, which airdrop speculators also drove. However, in Arbitrum’s case, there has yet to be an airdrop.

” The rise in on-chain activity “reminds us that speculation about a potential airdrop can sometimes be used to boost on-chain activity, similar to how the Arbitrum Odyssey caused a surge in Arbitrum on-chain activity,” said Arnold Toh, research analyst at The Block.

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