The Reason Behind Optimism’s Price Correction, Are Arbitrum and Everlodge Good Alternatives
–News Direct–
In this article, we make sense of the fluctuating prices of Arbitrum, Optimism, and Everlodge, and explore their respective tokens ARB, OP and ELDG.
Optimisms token unlocks bring both good and bad
The Optimism token (OP) has been defying the odds and pumping hard despite extreme inflationary pressure over the last year. OP is up 225% this past year and 86% last month, massively outperforming Ethereum.
This epic rise has occurred despite OP's circulating supply quadrupling from 214 million tokens at the start of 2022 to over 911 million now. Typically such rapid token unlocking craters a cryptocurrency's value. And a few days after the token unlock we did indeed see a correction in the price, which is currently down 21% since its all-time high 10 days ago.
But from a macro perspective, Optimism is still doing very well. Optimism's rise seems tied to scheduled upcoming retroactive airdrops and incentives for new stakeholders spanning governance, partners, and public goods funding. Rather than fearing this inflation, investors appear to be betting on it attracting even more interest and contributors to the ecosystem long-term.
Similar network token rallies have already played out for the likes of Avalanche, Arbitrum, Ethereum, Near, and Solana. History shows that the biggest gains often happen among smaller cap coins building on these platforms, such as Everlodge which is building on Ethereum.
Arbitrum and Optimism have a lot in common
Like Optimism, Arbitrum is another Layer 2 blockchain that utilizes optimistic rollups to scale Ethereum. Both help tackle congestion, high fees, and latency by batching and validating transactions off-chain before settling on Ethereum. These technical similarities have attracted major DeFi apps like Uniswap to deploy across both Arbitrum and Optimism.
Just as Optimism endured supply shocks from token unlocks, Arbitrum braces for impact from its own upcoming unlocks. In March 2024, Arbitrum will release over 1.1 billion ARB tokens worth nearly $1 billion – 87% of the circulating supply. This threatens short-term downward price action.
Yet over the long term, Arbitrums incentives and distribution to key stakeholders echo Optimisms goal of fortifying its ecosystem to drive adoption. Once selling pressure eases after the unlocks, the outlook remains strong for both Layer 2s as infrastructure improves and fees remain low compared to Ethereum mainnet.
Their ambitious token models weather near-term volatility by ensuring the shared community ownership required for sustainability. However, ARB, like OP has gone up a lot already and may now face volatility due to the continuing unlocks for the next few years.
And this is why many investors are turning to smaller cap coins such as Everlodge, to get bigger gains.
Everlodge – a bullish new idea without sell pressure
As Layer 2s like Arbitrum and Optimism battle their token unlocks and corresponding volatility, Everlodge presents a fresh alternative devoid of such supply shocks. And those bullish on Ethereum can capitalize by buying this smaller cap token, which is still in presale.
By minting luxury hotels and villas into property-backed NFTs, Everlodge's novel model allows owning a slice of a vacation property for as little as $100. As asset values appreciate, so too do the linked NFTs. A well-designed marketplace will enable seamless trading of these blockchain properties.
Through fractional Real World Asset tokenization, Everlodge will make global real estate investment accessible to anyone. Everlodge overcomes illiquidity and the opacity hindering traditional vacation home investing. And perhaps most importantly, makes it accessible to ordinary investors who dont have hundreds of thousands of dollars to sink into just one property or asset.
Integral to Everlodge's ecosystem is its ELDG token, built on Ethereum. ELDG provides tangible utility which is important for price.
Holders will enjoy discounts on property purchases, trading fees, and maintenance costs. Similar to timeshare benefits, ELDG holders even receive complimentary annual stays at Everlodge properties. These can be enjoyed personally or resold at a profit to others.
Given that ELDG is on offer at $0.029 and will launch for $0.039, theres a significant upside throughout the presale alone. When the token goes live on Ethereum and major CEXs and DEXs, the price may rise as much as 3,000%.
Everlodge provides you with a seamless approach to fractional investing in vacation rentals, eliminating the complexities associated with traditional real estate investment. Our innovative platform revolutionizes the way people invest in second homes.
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View source version on newsdirect.com: https://newsdirect.com/news/the-reason-behind-optimisms-price-correction-are-arbitrum-and-everlodge-good-alternatives-154917673
Everlodge
COMTEX_446218956/2655/2024-01-12T10:42:48
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No News Postbox journalist was involved in the writing and production of this article.
