Optimism (CRYPTO:OP), a leading Ethereum (CRYPTO:ETH) Layer 2 solution, has seen its total value locked (TVL) plummet to $643 million, marking its lowest since October 2023 amidst a broader crypto market downturn.

Despite the decline, anticipation surrounds the imminent launch of Ethereum ETFs, which could potentially rejuvenate market interest in OP.

The TVL drop reflects increased asset withdrawals amid market volatility, contributing to an 18% decrease over the past month.

OP's native token trades at $1.51, down 32% recently, with bearish sentiment prevailing as indicated by technical indicators.

The launch of spot ETH ETFs might revive OP's fortunes, though failure to meet expectations could see its price dip to $1.32.