Top Optimism Ecosystem Tokens by Market Cap [2023]

WBTC, similar to Bitcoin’s price, has been a standout performer among the top cryptocurrencies by market cap since the start of 2023. It has shown a robust upward trajectory, marked by consistent higher highs and higher lows in its price action pattern. Although there was some weakness in May, June has been a remarkable month, propelling WBTC’s price back above $30,000, where it has remained since. So far this year, Wrapped Bitcoin’s price has surged by an impressive 78%! Currently, WBTC is trading within a consolidation zone, fluctuating between $28,000 to $32,000. Presently, it sits at the midpoint of this range, and a breakout beyond $32,000 may lead to further upward price movement.

Uniswap’s performance throughout the beginning of 2023 has been rather lackluster. However, since the start of June, there has been a significant shift towards a more optimistic outlook. The chart shows a parallel channel, and UNI’s price has surged by over 50% from its June lows, coming close to breaking through the year-to-date high of $7.5. Currently trading at approximately $6, a mere 25% increase from the current levels would be sufficient to surpass the YTD high. The RSI is at a reasonably favorable level, around 60, and additionally, UNI’s price is currently above the 50-day and 200-day exponential moving averages, providing a substantial boost to the bullish direction.

Chainlink (LINK) has emerged as a significant Optimism ecosystem coin and a leading decentralized oracle network in the blockchain space. It plays a crucial role in bridging the gap between smart contracts and external real-world data, enabling secure and reliable interactions between on-chain and off-chain environments. As a top optimism token, Chainlink’s decentralized oracle solution has become integral to various DeFi protocols, providing essential data feeds for accurate and trustworthy smart contract execution.

The LINK token serves multiple purposes within the Chainlink ecosystem. It acts as a utility token, allowing node operators to participate in the network by staking LINK tokens as collateral. In return, they are incentivized with rewards for delivering accurate data to smart contracts. The LINK token is also used for governance, enabling community members to participate in the decision-making process for the platform’s future developments.

Chainlink’s integration with the optimism ecosystem enhances its capabilities, offering improved scalability and responsiveness for data requests. By leveraging the power of optimism, Chainlink ensures that its Oracle services can efficiently meet the demands of high-throughput DeFi applications without compromising on security and decentralization.

LINK/USD | Source: TradingView

Since the beginning of 2023, LINK has displayed moderate bullishness, following a higher high, higher low price action pattern, with a minor dip in June 2023. The token’s price has witnessed a notable surge of over 52% in the year-to-date timeframe and has gained more than 64% from its June lows. Interestingly, it swiftly reentered the upward channel pattern within just a few weeks. Nevertheless, there is a possibility of short-term bearishness for LINK as it experienced a death cross of the 50-day and 200-day exponential moving averages in early June. Currently, it is yet to reverse this into a golden crossover. Furthermore, the Relative Strength Index (RSI) for LINK stands at 62 down from over 70, indicating that the ongoing rally may slow down, considering it is coming back from overbought territory.

4. Lido DAO (LDO)

Lido DAO (LDO) is among the top Optimism ecosystem coins, playing a vital role in the growing landscape of decentralized finance. As an integral part of the Optimism crypto movement, Lido DAO aims to bring greater liquidity and accessibility to staking services on various blockchain networks.

Lido DAO offers users a seamless way to participate in staking activities without the need to lock up their assets directly on the native blockchain. Instead, users can stake their tokens through Lido’s liquid staking protocol, which converts staked tokens into liquid representations called stETH (Staked Ether). These stETH tokens are then tradable on decentralized exchanges, allowing users to access the benefits of staking while maintaining the flexibility to trade their holdings.

As a top optimism token, LDO serves as the governance token for the Lido DAO ecosystem. LDO holders have the power to participate in key decisions, such as protocol upgrades, fee adjustments, and overall governance policies. This decentralized governance model ensures that the community’s voice is heard and actively shapes the future development of Lido DAO.

By providing a reliable and secure liquid staking solution, Lido DAO contributes to the growth and accessibility of blockchain networks within the optimism ecosystem. As a result, users can actively participate in staking activities without compromising the liquidity of their assets, making Lido DAO a key player in the ever-expanding landscape of decentralized finance.

Read On: Top Cryptos with Lowest Transaction Fees

LDO/USD | Source: TradingView

Lido DAO’s native crypto token, LDO, experienced significant price appreciation early in the year; however, it quickly retraced a substantial portion of those gains and entered a sideways pattern, as evidenced by the parallel channel on the chart. LDO’s price fell into a descending triangle pattern but managed to maintain its position above the critical support level of $1.6. Presently, it has returned to the accumulation range, fluctuating between $ 1.8 and $2.75. For LDO to recapture its previous bullish momentum, it must convincingly break out above the year-to-date highs of $3.25 and maintain its position above this level. Otherwise, the remainder of 2023 might see LDO consolidating within the current range.

5. Aave (AAVE)

Aave (AAVE) is another participant in the Optimism ecosystem coins, revolutionizing the decentralized lending and borrowing space. As one of the top optimism projects, Aave operates on the Ethereum blockchain, offering users a comprehensive decentralized finance (DeFi) platform.

Aave’s native token, AAVE, plays a central role in the ecosystem as it serves as the governance token. Token holders have voting power to influence protocol upgrades, fee adjustments, and overall governance decisions. Furthermore, AAVE holders can participate in Aave’s Safety Module, which provides insurance against potential protocol risks.

With Aave, users can seamlessly lend and borrow various cryptos without intermediaries. Users can access capital without collateral through its innovative flash loans feature, opening up unique arbitrage and trading opportunities. Additionally, Aave supports liquidity provision and yield farming, further enhancing the overall DeFi experience.

By combining the benefits of decentralized lending and borrowing with the flexibility of liquidity provision, Aave continues to be a vital player in the Optimism crypto space. Its active community and robust governance model demonstrate the platform’s commitment to providing cutting-edge DeFi solutions for users worldwide.

AAVE/USD | Source: TradingView

AAVE has been on an uptrend ever since the middle of June, after seeing a major whipsaw on the downside between February to end of May. This is largely a positive indication as in a few short weeks, AAVE price has been able to prove a solid breakout beyond the 50-day and the 200-day exponential moving averages – rallying well over 50% from under $50 to over $80 by the middle of July. With an Relative Strength Index value just around 50, we could see a continuation of this rally, provided the broader market sentiments remain positive.

6. Frax (FRAX)

Frax (FRAX) has emerged as a key player among the Optimism ecosystem coins, introducing a novel algorithmic stablecoin that combines the stability of traditional stablecoins with the decentralized nature of cryptos. As one of the top Optimism projects, Frax operates within the Ethereum blockchain and aims to maintain a stable value by dynamically adjusting its supply.

The Frax ecosystem includes two tokens: FRAX, the algorithmic stablecoin, and FXS (Frax Share), the governance and seigniorage token. FRAX is designed to maintain a 1:1 peg to the US dollar, providing users with a reliable and transparent store of value. On the other hand, FXS holders have voting power to influence the protocol’s parameters, such as collateral ratios and seigniorage rates.

The unique design of Frax enables it to adapt to changing market conditions, making it an appealing choice for users seeking stability and decentralization. With its innovative approach to stablecoins, Frax continues to make significant strides in Optimism’s crypto landscape, attracting users and investors alike.