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Highlights
- OMG, has experienced more than a 10% drop in the past 24 hours
- The OMG network is a layer two scaling solution for the Ethereum blockchain and to address the issues pertaining to its scalability performance
- The drop experienced by OMG follows an all time high of US$18.06, which it hit on October 4
After a month of extraordinary growth , Ethereum scaling solution, OMG, has experienced more than a 10% drop in the past 24 hours.
The downward trend is the first OMG has experienced in a while after growing almost 200% in the month of September.
The drop experienced by OMG follows an all time high of US$18.06, which it hit on October 4.
What is OMG?
As mentioned, OMG, which had previously been called OmiseGo, is a non-custodial scaling solution for Ethereum’s network.
Ethereum is the largest and oldest altcoin in the world and second largest cryptocurrency overall after Bitcoin.
Although Ethereum has seen close the gap on Bitcoin in terms of market capitalisation, Ethereum’s growing popularity combined with its dated infrastructure have resulted in slower and more expensive transactions for its users.
The OMG network is a layer two scaling solution for the Ethereum blockchain and to address the issues pertaining to its scalability performance.
What this means is OMG Network users are able to transfer Ethereum tokens (ETH) much more quickly and cheaply than when transacting directly on Ethereum’ platform.
Additionally, OMG operates as a single block producer, commonly known as Proof-of-Authority (PoA) chain.
Image Source: © Prim91 | Megapixl.com
OMG is a layer built on top of Ethereum where transactions can be sent to make them both more cost and speed effective. This allows all the transactions made on OMG to be cross-checked in batches instead of single-handedly, as is the case for Ethereum’s transactions.
The result is that the OMG platform has the potential to scale Ethereum to several thousand transactions per second as opposed to just ten-fourteen transactions per second, which is the case in the existing Ethereum network.
Ethereum’s Upgrade Delays
Ethereum have been working on an upgrade for quite some time but unfortunately delays have pushed that completion date to late 2022 at the earliest.
The delays have changed the cryptocurrency landscape with many users vying for alternative and more technologically recent options like Solana and Cardano.
This has helped those networks see increased popularity resulting in higher market capitalisation and pricing.
Similarly, it has helped network solutions, like OMG, experience increased usership, particularly in recent months.
Meanwhile, ETH has experienced a solid past 24 hours, rising ~3%, adding to a nice period of growth of ~w20% over the past seven days.
OMG is available on Binance.
