The rally means OMG’s market cap has surged by approximately $275 million since this time last week. OMG’s price has increased by nearly 1,000% since it fell to its all-time low of $0.35 after the Black Thursday crash in March.
Denis Vinokourov, research head at crypto exchange BeQuant, told CoinDesk OMG Network was benefitting from a “perfect storm” of industry-wide developments. The craze around DeFi – a subset that has exploded to well over $6 billion – has seen a surge in activity on Ethereum, leading to soaring fees.
There are also reports the testnet for Eth 2.0 – a new iteration that would make the blockchain platform much more scalable – crashed last week. As such, investors are beginning to look more closely at layer 2 solutions, he said.
Ethereum’s average transaction fees rapidly shot up from under $0.10 in January to nearly $3.40 currently – the first time fees have stayed so consistently high.
Stablecoin Tether – a notable “gas guzzler” – said Wednesday it was launching on OMG Network so it could take some of the pressure off the base layer.