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OP Token Facing Future Declines Due to Updated Ethereum Network
The core reason for creating the OP token was to reduce gas fees and increase transaction speed. Currently, gas fees are around $1 during normal times, and transaction speed is not as high as desired. With the recent Ethereum network update, the fees for smart contracts have increased to about $1 and transaction speed has improved somewhat. However, the fundamental problem that OP aimed to solve has been addressed, making the project less necessary, similar to Arbitrum (ARB). Before the update, ARB also had lower fees than Ethereum, but after the upgrade, its fees increased, and the original purpose of the project was undermined. On Ethereum, transaction fees now tend to be similar and are considered more secure than bridges used by OP and ARB and the storage systems.
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AI Analysis
The recent Ethereum network upgrade has significantly impacted the landscape for layer-2 solutions like OP and ARB. Originally, these projects aimed to offer lower transaction fees and faster speeds c...
AI Recommendation
Given the recent developments, it is advisable to consider reducing exposure to OP tokens. The increased Ethereum fees diminish the fundamental advantage of layer-2 solutions, leading to a potential d...
Disclaimer
The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.