What the Optimism rise means for NFTs!
Optimism is a layer two (L2) scaling solution that inherits the security of Ethereum while making Ethereum transactions fast and cheap. I've been beating the Optimism + NFTs drum for a while now, not only because of the friendlier UX of the L2, but also because it is the only scaling solution that currently offers full parity with the Ethereum Virtual Machine.
This full compatibility with the EVM means NFT builders can deploy their dapps to Optimism with 1 click while still enjoying all the L1 Ethereum tooling they know and love.
Combine this advantage with how Optimism just became the first of the "big four" L2s (Arbitrum, Optimism, zkSync, and StarkNet) to unveil a native token, and we have great catalysts for the Optimism NFT scene to flourish in the future.
That said, let's dive into this week's Optimism OP news and give you some things to look forward to NFT-wise.
Table of contents
Optimism Collective and OP
Described as a "large-scale experiment in digital democratic governance," the Optimism Collective will power the Optimism ecosystem and will be governed by two houses: the Token House and the Citizens' House.
The Token House, which will be started by the first OP airdrop, will consist of OP ERC20 token holders. These stakeholders will vote on protocol incentives, updates, and beyond.
The Citizens' House, also due later this year, will vote on public goods funding initiatives, and membership will be distributed through non-transferable soulbound NFTs.
Checking OP eligibility
The first OP airdrop hasn't taken place yet, but you can check if you're eligible for the upcoming distribution. So if you've tried the Quixotic NFT marketplace or other dapps on Optimism recently, check to see if you qualify for this first round of OP.
More airdrops are coming, so it's not too late to experiment with the L2 and earn a spot for future awards. In the meantime, avoid scams by following the Optimism team's official posts so you know when OP is officially live.
L2 announcement
NFTs on Optimism can be very cheap. For example, the Optimism team released their Optimism Collective Mirror post as Mirror's first L2 NFTs, and they were minus less than $1 in gas fees. With further technical advances over time, look for these L2 NFT gas fees to drop even further.
OP is not bad for ETH
Simply put, Optimism's efficiency and security comes from the way the L2 batches and posts transaction data to Ethereum. The OP token will be a governance tool for the Optimism Collective, while the Optimism L2 will continue to pay ETH fees to post its transactions to Ethereum.
So for example, the Optimism L2 that sees more NFT activity would directly add value to Ethereum as opposed to alt-L1s that can silo value for themselves via native fee markets. On the other hand, how OP is expected to add value over time is an open question.
Optimism NFT rise
As you can imagine, the news of OP and further rounds of airdrops has led to a burst of activity on Optimism. According to L2BEAT, total closed value (TVL) on Optimism is up +16% over the past week.
Remarkably, this was not just a general surge in bridging, as the wave of activity coincided with a huge spike in transactions in Optimism's fledgling NFT ecosystem. According to this Dune Analytics dashboard tracking Quixotic by Michael Silberling, on April 27 the NFT marketplace recorded its best day ever for ETH volume, USD-denominated volume, number of NFT transactions, and unique active addresses.
Demand for more NFT projects grows
As Mirror's Optimism integration showed, NFT projects can provide a very friendly UX by embracing Optimism in the here and now. Therefore, as the buzz around this EVM-equivalent L2 grows and NFT users continue to look for more affordable solutions, expect a growing clamor for popular L1 NFT projects to include Optimism support.
Zoom out
Optimism's full EVM equivalence and upcoming bridging benefits will soon make it trivial to move and use NFTs between Optimism and Ethereum.
So unlike non-EVM NFTs on blockchains such as Tezos and Solana that have technical peculiarities, Optimism NFTs are in fact Ethereum NFTs and vice versa. This dynamic could have a multiplying effect on the growth of the Optimism NFT scene in the future, as Ethereum NFTs are still seen as the highest quality and most sought-after NFTs out there.
Indeed, the more Optimism NFTs are seen as interchangeable with, or indistinguishable from, Ethereum NFTs, the more a significant Optimism NFT boom becomes likely in the coming months.