Optimism Falls After its Quests End

Key Insights

• Season 1 of Optimism's incentive program, Optimism Quests, recently concluded on January 17 after lasting four months.
• During the duration of incentives, transaction activity on the network increased 426%. All protocols also saw activity increase significantly.
• Network activity crashed 60% once incentives ended. Protocols saw a similar situation with some seeing activity fall 90%+.
• Due to decreased transactions, network profit also dropped, leading to a a P/E ratio spike from 1,000 to 3,950.
• Optimism will likely have future incentive programs designed to encourage adoption of other facets of its network.

Optimism recently concluded its four-month incentive program, Optimism Quests, on January 17, 2023. Users who interacted with the 18 participating protocols earned an NFT to become eligible for future rewards. Speculation that engagement with Quests would preempt qualification for the next round of OP airdrops helped drive user interest.