In September the frenzy that propelled the nonfungible token (NFT) sector quieted down but a burst of fresh energy emerged as the layer-two sector heated after the successful launch of Ethereum (ETH) scaling solutions like Arbitrum and Optimism.
Another project that has benefited from the sector’s transition to layer-1 and layer-2 alternatives is OMG Network (OMG), a non-custodial layer-two protocol that utilizes an optimistic rollup scaling solution to improve Ethereum scalability.
Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $8.42 on July 20, the price of OMG has climbed 380% to reach a daily high at $13.52 on Oct. 1 on a record $3.37 billion in 24-hour trading volume.
OMG/USDT 1-day chart. Source: TradingView
Prior to the market-wide pull-back that began in early May, OMG had been performing well in large part thanks to a Coinbase listing. A major development for the protocol came at the beginning of June when the project rebranded from OmiseGO to OMG Foundation as part of its pivot toward layer-two solutions.
Enya and the Boba Network back OMG’s progress
A major part of the rebrand was to highlight the network’s partnership with Enya, a company that creates decentralized infrastructure solutions and the creator of the Boba Network.
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
According to the project’s website, the Boba Network is a Ethereum layer-two optimistic rollup scaling solution aimed at reducing gas fees, improving transaction throughput and extending the capabilities of smart contracts.
With Enya building the Boba Network as a core contributor to the OMG Foundation, the OMG token has benefited from its association with the launch of a new layer-two solution
The rollout of the Boba Network, which rebranded from OMGX, began on Aug. 19 and closely tracked the rise in the price of OMG.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for OMG on Aug. 16, prior to the recent price rise.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS™ Score (green) vs. OMG price. Source: Cointelegraph Markets Pro
As seen in the chart above, the VORTECS™ Score for OMG began to pick up on Aug. 16 and climbed to a high of 75 on Aug. 25, around 24 hours before the price began to increase by 100% over the next three weeks.
Source: Cointelegraph
