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Highlights
- The Ethereum network scaling solution, OMG has grown by almost 70% since September 1, 2021
- The OMG Network was designed as layer two scaling solution for the Ethereum blockchain
- A lot of OMG’s increased popularity has to do with the exploding NFT and decentralised finance (DeFi) space.
The OMG Network has experienced a bumpy month but has managed to see a healthy rise since the beginning of September.
The Ethereum network scaling solution, OMG Network, whose native token is OMG, has grown by almost 70% since September 1, 2021.
OMG Network’s Purpose
The largest altcoin network in the world, Ethereum, has grown considerably in the past twelve months. This has been both good and bad for Ethereum. The positive effects include the fact that it has closed the gap on Bitcoin’s market capitalisation, which is the largest in the world.
The bad news for Ethereum, however, is the increase in its network’s users has exposed issues related to its scalability. Both its speed and cost have been prime targets for increased scrutiny and criticism in recent months.
The OMG Network was designed as layer two scaling solution for the Ethereum blockchain.
As such, OMG Network users are able to transfer ETH and ERC20 tokens much more quickly and cheaper than when transacting directly on the Ethereum network.
OMG Network’s Price Analysis
As previously mentioned, the price of OMG during the September has been bumpy, albeit one of growth. Throughout the last month there have been four large spikes with an immediate dip following.
The highest price OMG reached was on September 21, when it hit US$11.09. This was followed by decline the next day with price hitting US$8.50. The day after this, on September 23, the price spiked again to around US$10. These three days had been fairly indicative of the chart pattern for OMG in the past month.
OMG’s market market cap currently sits at US$1,731,325,020 as of October 1, 2021. It has a circulating and maximum supply of 140,245,398.25 and 140,245,399 tokens, respectively.
Where’s OMG Headed?
Although OMG peaked at US$14.28 on May 7, 2021, it has caught investor’s attention largely due to the fact it’s grown over 400% so far this year.
A lot of its increased popularity has to do with the exploding NFT and decentralised finance (DeFi) space.
The OMG Network’s recent partnership with Enya launched the Boba network. The Boba network is the main factor which has allowed users to use Ethereum’s network and avoid slow speeds and high costs.
This has been useful for users of NFT platforms on Ethereum’s network, like Axie Infinity who require higher transaction speeds and lower costs to get the most out of it.
Just to give a quick example of just how much of a difference Boba makes, consider: Ethereum’s blockchain can only handle fewer than 50 transactions per second. Boba can process thousands per second
Therefore if the NFT and DeFi space continue to increase in popularity – and there’s no sign of them slowing down – OMG will likely be a good token to invest in.
