OMG Rallies After Roll Out of ‘Boba Network’ Layer-2 Solution
However, as the nonfungible token (NFT) sector cooled in September, a burst of new energy erupted as the layer-two domain heated up after August witnessed the successful introduction of Ethereum (ETH) scaling solutions such as Arbitrum and Optimism.
In addition to OMG Network (OMG), which is a non-custodial layer-two covenant that utilizes an optimistic rollup scaling approach to enhance Ethereum scalability, the move to layer-1 and layer-2 alternatives has aided other projects in the industry as well.
The price of OMG token has risen 380% after recording a nadir of $8.42 on July 20, according to data from Coingecko, reaching a daily peak of $13.52 on October 1 on a record transactional volume of $3.37 billion in 24-hours. Before the overall crypto market retracement that started in early May, OMG had been doing well, owing in large part to its inclusion on the cryptocurrency exchange Coinbase.
As portion of its transition to layer-two services, the project renamed from OmiseGO to OMG Foundation at the start of June, marking a significant step forward for the covenant. The network’s collaboration with Enya, a firm that develops decentralized framework solutions and is the originator of the Boba Network, was a key component of the rebranding effort.
Boba Network is an Ethereum layer-two upbeat rollup scaling approach, as per the project’s homepage, with the goal of cutting down on gas costs while simultaneously increasing transaction processing ability and expanding intelligent contract functionality.
The OMG token has gained from its connection with the introduction of a new layer-two solution, thanks to Enya’s involvement in the development of the Boba Network as a key contributor to the OMG Foundation. The launch of the Boba Network, which was renamed from OMGX, started on August 19 and was precisely timed to the increase in the price of the OMG cryptocurrency.
1/ The Layer 2 space is heating up. @optimismPBC, @arbitrum, @StarkWareLtd and sidechains like @0xPolygon. We now have @bobanetwork The differentiating feature for Boba Network is fast transfers from Boba to #Ethereum mainnet, which is not found in other rollups.
— DeFi Info (@AboutDefi) August 19, 2021
A positive prognosis for OMG was first detected by VORTECSTM data from Cointelegraph Markets Pro as early as August 16, far before the current price increase. This algorithmic analysis of past and present market situations is held by Cointelegraph and is generated from a mix of data sources including market mood, transaction volume, latest price changes, and Twitter activity among other things.
As can be visualized in the chart, the VORTECSTM Score for OMG started to rise on August 16 and reached a peak of 75 on August 25, less than 24 hours before the stock’s price began to rise by 100% in the following three weeks.