- Coinbase’s Base contributed over $16.4 million (41%) of the Optimism Collective’s lifetime revenue; its shift to an independent “unified stack” severs this vital sequencer fee-sharing agreement.
- The $OP token collapsed 23% in 24 hours, hitting a new all-time low of $0.14, effectively wiping out all gains made during the 2024–2025 cycle.
- The crash has reignited a fierce industry debate led by traders like Altcoin Sherpa, questioning whether L2 tokens possess a sustainable business model without a “forced” revenue-sharing moat.
The cryptocurrency markets, Optimism’s native token $OP has suffered a brutal downturn, shedding over 23% of its value in just 24 hours to trade at approximately $0.14. This plunge extends a longer-term slide, with the token now down 97% from its all-time high of $4.84 achieved in 2024, and a staggering 62% loss in the past month alone. The catalyst? Coinbase’s Base, one of the largest Ethereum Layer-2 networks, announced its departure from Optimism’s OP Stack to develop its own technology stack.
The Base Divorce: Why Coinbase’s Move Shattered the Superchain Dream
Base, launched in 2023, has grown into a powerhouse with $3.85 billion in total value locked, relying on the OP Stack for its infrastructure. This move severs a critical revenue stream for the Optimism DAO, which previously benefited from Base’s sequencer fees—potentially millions annually.
The announcement triggered immediate selling pressure, pushing $OP to a new all-time low of $0.140 amid weak liquidity and bearish sentiment. Technical indicators paint a grim picture: the token has broken key support levels like $0.15, with RSI at 34.18 signaling oversold conditions but bearish MACD momentum suggesting further downside to $0.25–$0.30 by March.
Sequencer Economics: The Sudden 41% Revenue Hole in the Optimism DAO
Renowned crypto trader Altcoin Sherpa captured the mood on X, stating, “There just isn’t any reason for many of these tokens to exist. -97% from ATH and -62% from a month ago. $OP is just 1 example.” He tempered the pessimism by noting potential multiples from current lows in a bullish rebound, though he cautioned it won’t outperform the market.
This sentiment echoes broader concerns about Layer-2 tokens’ utility. As replies to Sherpa’s post highlight, L2s like Optimism lack strong moats, essentially serving as chains atop Ethereum without unique business models. In a saturated market, competition from rivals like Arbitrum or emerging chains exacerbates the pressure.
Altcoin Sherpa’s Warning: Is the Layer-2 Token Model Fundamentally Broken?
Despite the gloom, on-chain data shows resilience: whales accumulated 60 million $OP amid the crash, and $7.9 million in short positions were liquidated. Optimism’s focus on its core chain and other partners could foster recovery, but the event underscores a harsh reality—many altcoins may indeed be “functionally useless” in prolonged bears. For investors, this dip might represent a buying opportunity, but only if the ecosystem proves its long-term value beyond hype.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
