The second half of July catapulted OMG token price back to the sky, as was the case with many players this summer, those who were both high and low in the market cap rankings. Curiously, investors can’t seem to make up their minds on OMG Network, which since mid-summer can be seen trading inside a widening wedge, which by now (late September) means fluctuating between ~$9 and ~$11.
OMG Network Price Prediction: Is OMG Foundation’s OMG Network THE Level 2 Scaling Solution for Ethereum?
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Table of Contents
OMG Network Fundamental Analysis
OMG is a utility token on the OMG Network — a Layer 2 Plasma-based Ethereum scaling solution. The project has been known as OmiseGo from the time it was founded in 2017 and until it was rebranded in 2020. OMG Network has turned into OMG Foundation since then, and there are more projects in the works.
OMG Network uses Layer 2 childchains in the implementation of Plasma called More Viable Plasma. This architecture is built around the Proof-of-Authority (PoA) consensus mechanism. It uses just one known and verified node called Operator as a block producer, although there is also a so-called Watcher network that monitors the childchain and reports abnormalities.
This step towards centralization is a tradeoff: the childchain architecture doesn’t make Layer 2 chains either custodial or completely independent — which in this case is a good thing. The funds will not be lost or “stuck” on the childchain if it goes out of service. The other implementations of Plasma (i.e. sidechains), while more flexible, have more inherent risks.
OMG Network can be used to scale transactions (it boasts the ability to process up to 5,000 transactions per second), although it cannot handle smart contracts since Plasma isn’t designed for this. Enya, which is a principal developer of OMG Foundation, is working on Boba Network for this purpose (it will use Optimistic Rollups instead of Plasma).
Note that soon to be issued BOBA token will be automatically distributed to OMG token holders. OMG coin is also used to pay transaction fees and is needed for staking.
OMG Network Live Price Chart
After starting 2021 at around $2.5, OMG token price experienced some rollercoaster-like highs and lows during the spring’s crypto market bull run. After peaking in May at ~$15.3, the OMG coin value started falling, almost going back to $2.5, the price it was traded at in early January.
The second half of July catapulted OMG token price back to the sky, as was the case with many players this summer, those who were both high and low in the market cap rankings. Curiously, investors can’t seem to make up their minds on OMG Network, which since mid-summer can be seen trading inside a widening wedge, which by now (late September) means fluctuating between ~$9 and ~$11.
This adds some uncertainty to OMG’s future. On the other hand, the trend has been going up quite confidently, which still keeps experts’ and fans’ OMG Network price predictions quite optimistic.