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.
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.
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.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Ray Schuetz received a Masters Degree in computer science from The University of Texas (Austin). Ray has been working as a full-time blockchain consultant for the past 3 years. In his spare time, Ray enjoys writing for EthereumCryptocurrency.com and other crypto news publications.