Optimism Plunges Double Digits Amid Base's Tech Stack Overhaul
TL;DR
Optimism's OP token dropped over 20% as Base, a major layer 2 solution, announced it's switching from the OP Stack to its own tech stack, ending revenue sharing and dependency. This move highlights broader altcoin struggles amid market volatility and narrative-driven price movements.
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Optimism's OP token has plunged by more than 20% over the past 24 hours, coinciding with the announcement that Base, a popular layer 2 solution, is transitioning from the OP Stack to a unified, self-operated tech stack.
OP is currently trading at $0.1436, down 23.4% over the past 24 hours, according to CoinGecko data.
Base's plan to disconnect from Optimism will sever a three-year dependency that had tightly linked the two projects' fortunes.
Base said in a Tuesday announcement that it will move from its current OP Stack foundation to a consolidated "base/base" stack, citing the need for faster shipping cadence and reduced complexity.
Base and Optimism
Base launched as an OP Stack chain in 2023, with a portion of its sequencer revenue flowing to Optimism's treasury as part of the licensing agreement. That revenue stream will now remain with Base.
It also means that Base, the highest-revenue layer 2 in the OP Stack ecosystem, will have greater independence, but it will no longer share sequencer revenue with Optimism.
However, Optimism’s recent selloff isn’t a one-off. It has been losing ground for a while, shedding more than 53% over the past month and trading at $0.147, roughly 97% below its all-time high of $4.84, set almost two years ago. Base, by contrast, has no token.
Altcoins chase narratives
That steady decline underscores how altcoin price movements have become increasingly isolated to select narratives while the broader crypto market bleeds—a dynamic highlighted in a previous Decrypt report.
Meanwhile, the selling pressure on altcoins, over the past 13 months, has spiralled, hitting -$290 billion, Decrypt previously reported.
Only a select few altcoins continue to post occasional gains, like Zcash and Monero in the privacy sector or WLFI’s recent double-digit rally ahead of Wednesday’s World Liberty Forum, but most tokens are struggling amid Bitcoin's extended consolidation.
In the short term, Ignacio Aguirre Franco, CMO at Bitget, said to expect continued volatility and narrative-driven moves in altcoins. “Without a strong macro tide lifting risk assets broadly, altcoins are likely to trade in choppy ranges, reacting to idiosyncratic events, on-chain flows, or fleeting sector narratives,” Franco told Decrypt.
This muted sentiment is reflected on prediction market Myriad, owned by Decrypt's parent company Dastan, where users place just a 9% chance on an "alt season" taking palce before April.