In September, the frenzy that drove the NFT sector subsided, but a wave of new energy emerged as the Layer 2 sector heated up following the successful launch of Ethereum (ETH) scaling solutions such as Arbitrum and Optimism.
Another project that has benefited from the sector’s transition to Layer 1 and Layer 2 alternatives is the OMG Network (OMG), a non-guarded Layer 2 protocol that uses an optimistic scaling solution to improve Ethereum’s scalability.
Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $8.42 on July 20, OMG price has surged 380% to reach a daily high of $13.52 on Oct. 24 hours a day.
Before the market-wide slump that began in early May, OMG performed well largely thanks to the Coinbase listing. A major development for the protocol occurred at the beginning of June when the project was renamed from OmiseGO to the OMG Foundation as part of its focus towards Layer 2 solutions.
Enya supports and Boba Network presents OMG
A big part of the rebranding was highlighting the network’s partnership with Enya, a company that creates decentralized infrastructure solutions and the creator of the Boba Network.
1 / The area of the second layer is heated. Tweet embedAnd Tweet embedAnd Tweet embed And sidechains like @0xPolygon. we have now bobanetwork The distinctive feature of the Boba network is the fast transfer from Boba to # Ethereum mainnet , which is not found in other groups.
– DeFi Info (AboutDefi) August 19, 2021
According to the project’s website, the Boba Network is an Ethereum-optimistic scaling solution that aims to reduce gas fees, improve transaction throughput, and expand the capabilities of smart contracts.
With Enya building the Boba Network as a core shareholder in the OMG Foundation, the OMG token leveraged its association with the launch of a new Layer 2 solution
Bupa Network, renamed from OMGX, went live on August 19 and has closely tracked the rise in OMG’s price.
VORTECS™ data from Cointelegraph Markets Pro began detecting a bullish outlook for OMG on August 16, ahead of the recent price rally.
The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions drawn from a range of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As shown in the chart above, OMG’s VORTECS™ result started rising on August 16 and rose to 75 on August 25, about 24 hours before the price would start to rise 100% over the next three weeks.
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