Omisego (OMG) Price Doubles In A Week As DeFi Wave Pushes Investors for Layer 2 Solutions

Omisego (OMG) the native cryptocurrency for the OMG Network makes rapid over the last week with its price surging over 100% in short time. This means that the Omisego cryptocurrency has added nearly $300 million to its market cap in one week.

The massive Ethereum fees and surge in the DeFi market has pushed investors to look for alternate Layer 2 solutions and the OMG Network has been the beneficiary of it. The Ethereum average transaction fee has rapidly surged from under $0.10 in January to nearly $3.40 at present. This is for the first time that the transaction fee has stayed this high for so long.

Analysts believe that the OMG Network is benefitting out of all these industry-wide developments. Ethereum is currently the biggest platform hosting DeFi applications. As the DeFi continues to grow massively, it has resulted in a very high user activity driving the gas fee higher.

Well, everyone is now eagerly waiting for the launch of Ethereum 2.0 platform which promises massive scalability and efficiency upgrade over the existing network. However, the latest industry reports suggest that even the testnet for the ETH 2.0 crashed last week. This has pushed more investors to look to Layer 2 scalability solutions like the OMG Network.

During the crypto market crash of March 2020, the OMG token price had crashed below $0.40. Since then, the cryptocurrency has gained over 1000% points so far. At press time, OMG is trading at a price of $6.13 with a market cap of $859 million.

Adding fuel to the OMG token rally, the largest stablecoin by market cap - Tether - recently announced that the USDT token will go live on the OMG Network.

Paolo Ardoino, CTO at Tether said: “At Tether we are committed to driving innovation and improvements to our service to better support our customers. By migrating USDt value transfers to the OMG Network we save costs, drive performance improvements and relieve pressure on the root chain network. This is good for Bitfinex and our customers, and the whole Ethereum ecosystem.”

Ardoino added that the OMG Network will further facilitate USDT deposits and withdrawals at Bitfinex exchange. “This will allow traders to react faster to trading opportunities and take advantage of arbitrage more efficiently between exchanges as the network grows,” he said.

Speaking about the USDT integration, Vansa Chatikavanij, CEO at OMG Network said: “Today, we’re excited to announce the launch of Tether on the OMG Network that supports thousands of transactions per second at a third of the cost of the same transaction on Ethereum. We’re delighted to address these fundamental issues and drive further growth and adoption of open financial services”.