There is no doubt that the cryptocurrency market is hot right now, with its value reaching trillions of dollars in 2021. Seeing the market’s value skyrocket, it got the attention of nearly everyone on the internet, and all of them wanted a piece of the pie. That being said, millions of people joined the market only this year, continuously investing and trading cryptocurrencies with one another, trying to maximize their profit. Even though blockchain technology is said to have the ability to process thousands of transactions per second, it is still a developing project. This surplus of transactions hit many networks hard, which resulted in very high gas fees and very low transaction speed. Ethereum was hit the hardest, reaching an average gas fee of 538 Gwei in September 2020. These gas fees eventually dropped but they saw another huge increase in May 2021, going above 298 Gwei. These issues are supposedly going to be gone once Ethereum 2.0 mainnet launches; however, the network still needs a short-term solution to manage these unsustainable high gas fees.
Many projects act as a scaling solution to Ethereum, and OMG Network is one of them. But how does OMG Network function? Who stands behind OMG Network? What is OMG? What does the future hold for OMG Network? Throughout this article, we will try to elaborate as briefly as we can on these and many more questions.
OMG Network Fundamental Analysis
Firstly, let us talk about the fundamentals of this coin. OMG Network was launched in 2017 and went by the name of OmiseGo. This token was founded by Omise – an online payment gateway based in Thailand. The OMG token is an ERC-20 token on the OMG Network and its primary purpose, after the network transitions to a Proof-of-Stake (PoS) model, will be staking. However, unlike many networks, staking OMG on its network can be paid out in any currency that the users accept – be that crypto or fiat. As mentioned above, Ethereum has been having a hard time processing all the transactions on its network lately, meaning that it needs some backup in order to run smoothly and without delays. In order to do so, some of the transactions occurring on the main Ethereum chain should be batched on another network, be that side-chain or off-chain. Serving as a layer 2 scaling solution, this is exactly what the OMG Network provides for Ethereum. Through a scaling framework known as Plasma, the OMG Network aims to take on some of the current stresses of the Ethereum Network, helping it in terms of efficiency and gas fees.
Rank: 493
What is Plasma?
Plasma is a scaling framework for stimulated execution of smart contracts, making it scalable to a significant amount. It was first envisioned by the co-founder of Ethereum, Vitalik Buterin, and it has the potential of reaching billions of state updates per second. Besides helping the main network run smoother, Plasma enables the blockchain network to represent a remarkable amount of DeFi applications throughout the world. This framework provides a set of tools that can and are continuously used by other blockchains in order to build their own layer 2 solutions. These solutions are called Plasma Childchains and are different from Sidechains. These Childchains are trustless and depend solely on Ethereum smart contracts for security.
OMG Network Price Analysis
The OMG token entered the year with an upward trend, jumping around the price of $2.5 at the beginning of January 2021. The coin was considered dead by many because of its price plummeting after the 2018 bull run. By October 2019, the token had a value of less than a dollar – and this went on for months. However, the coin eventually started to recover in mid-2020, reaching a price of $6.04 and regaining the trust of investors. This uptrend kept going until May 2021, during which month the coin hit the price of $12; only half the price of its all-time high. At the time of writing, the coin is sitting at the price of $4.75 with a market capitalization of $660 million and an average daily trading volume of $157 million.
OMG Network Price Prediction 2021
The cryptocurrency market has surged throughout 2021, reaching heights that many saw as impossible. According to CryptoGains, the price of OMG may continue to increase, or even skyrocket throughout this year, leaving the coin with a potential price of $68; scoring a whopping 1667% increase from today’s price.
Another prediction that implies the increase of the coin’s price is that of CryptoProfit. Their forecast shows that OMG may experience a huge increase, possibly breaking its all-time high numerous times. According to this forecast, the coin might hit $20 by July 2021.
OMG Network Price Prediction 2022
With blockchain technology expanding more and more each day, new issues that require solutions present themselves. One of these problems is the inability of Ethereum at keeping up with the demand on its network. In order to solve these issues, the network needs different scaling solutions, and one that is being supported by the co-founder of Ethereum himself is OMG Network. This gives OMG Network somewhat of a safety net regarding its price – always considering that the coin was labeled as ‘dead’ by many just before the last bull run hit.
That being said, let us dive in on some predictions regarding the price of OMG throughout 2022.
According to Cryptocurrencyprediction, the year 2022 might prove astronomical for the coin. Their prediction shows that OMG may reach a yearly high of $100.55 in November 2022 while ending the year with a price of $89.76 per coin.
Price Prediction For The Next 5 Years
The next five years look promising for the coin, even though the concept that it is built on is still very new. Plasma, the scaling framework that OMG Network uses, is still in its experimental phases and it is not known if it will be a successful project yet. Yet, as long as Ethereum continues its development accordingly to their plans, OMG Network should be doing good.
According to Liteforex, the price of OMG Network might reach the price of $24 after five years of gradually increasing. Somewhat of a similar prediction is that of Coinliker, which puts the coin at a potential price of $31.14 after five years, leaving investors with a 555% increase on their investment. However, when compared to the above-mentioned predictions, the forecast of Digitalcoinprice gives the coin a trading value of $15.84 by mid-2026.
OMG Network Market Prediction
WalletInvestor
WalletInvestor claims that the future is bright for the OMG token, giving it a price of $5.70 by the end of the year. Even though they state that reaching the $10 milestone is unlikely to happen during 2021, they expect that the coin could go as high as $11.70 by the end of 2022. Additionally, their five-year forecast gives the coin a price of $38.27, leaving investors with a 705% increase in their investment in a span of five years.
TradingBeasts
On the contrary, TradingBeasts forecast shows a stable future for the price of the coin. They claim that the coin might dwell around the price of $4 for two to three years, with small price movements. Additionally, they give the coin a maximum price of $6.75 by the end of 2024.
GovCapital
As per GovCapital, their forecast shows something completely different. According to them, the OMG token may hit prices as high as $19.54 by the end of a one-year period. This would mean an increase of 311% to any investment done while the token’s price is $4.75. Moreover, GovCapital predicts that the price of OMG may skyrocket in a matter of five years, reaching the moon with a potential price of $228.56, leaving OMG owners with 4751% more gains than they have today.
Our Price Prediction
As for us at Crypto Academy, we predict that the price of OMG might continue increasing during 2021, potentially surpassing the $10 milestone by the end of the year – this would essentially mean a 308% yearly price increase. Consequently, our forecast shows that the year 2022 may be more problematic for the coin, which might see a drop in its price at the beginning of the year. However, we believe that the coin may recover soon after and possibly hit the price of $21.32 by the end of 2022.
Based on our research, we believe that the coin may enter the year 2026 with a price between $150-$170$, and potentially end that same year above the price of $200.
Historic Market Sentiments
2017
OMG Network was created in 2017; however, it went by the name of OmiseGo. Their token had a price under $1 and hit the price of $12.22 that same year. After a small drop, its price continued to increase, reaching $19.89 on the 31st of December 2017.
2018
The token entered this year during a bullrun, reaching the price of $28.35 by the end of January 2018 and setting its current all-time high. These huge price movements went on for some months, with its price finally starting to drop by the end of April. This drop was huge for its price, which dropped to $1.4 by the end of the year.
2019
This year was considered the beginning of the end for the coin, with its price dropping under $1. The price of OmiseGo (descendant of OMG) eventually started to increase again and hit $2.4; however, this uptrend did not last long and the coin went back under $1 in a matter of weeks. By the end of December 2019, the coin had a price of $0.60.
2020
2020 is the year during which the coin was supposedly reborn. In June 2020, the coin was rebranded to OMG Network, and most of its leaders were changed. Only some months after these changes, the price of OMG increases by 147%, hitting $6.04 in August – a price similar to that of today.
FAQ
What purpose does OMG Network (OMG) serve?
OMG Network serves as a Layer 2 Scaling Solution for the Ethereum Network, consequently making transactions faster and cheaper.
What is Plasma?
The scaling framework known as Plasma is used for stimulated execution of smart contracts which enables an outstanding amount of scalability.
Where to buy OMG Network (OMG)?
At the time of writing, the three best crypto exchanges that have listed OMG are Binance, Kraken, and Coinbase.
Will OMG hit $10 by the end of 2021?
Based on our predictions, it is possible for OMG to hit $10 by the end of 2021.
Takeaways
- OMG Network is a Layer 2 scaling solution.
- There have been many community complaints regarding the high gas fees and slow transactions on the Ethereum network.
- OMG Network aims to serve as a short-term solution to the scalability issues that the Ethereum network has experienced throughout the last years.
- In order to do so, it uses the scaling framework known as Plasma that was first presented by Vitalik Buterin.
- OMG Network was formerly known as OmiseGo.
- At the time of writing, OMG trades at a price of $4.75, 4% higher than yesterday.
- Having the support of Vitalik Buterin makes OMG more credible to the eyes of many investors.
- According to many prediction websites and experts, now may be a good time to invest in OMG.