The OMG network could plummet as the token continues on climbing with different on-chain metrics showing that the price is ready to drop. We are reading more in our latest Omisego Financial analysis.
Tether announced the integration into OMG’s scaling solution to try and deliver faster and cheaper transactions. Immediately right after, the price of OMG surges more than 60% adding to the major gains posted in the past week. Despite the bullish price action, multiple on-chain metrics suggest that the uptrend is closely nearing an exhaustion point. The OMG network could plummet on this point here.
The network puts its layer 2 scaling solution into work after the new partnership with Tether. Speculators, therefore, saw this as a reason to go all-in which caused the prices to skyrocket. OMG previously known as Omisego, made headlines after the dramatic price action a week ago when the price tripled and hit a new yearly high of under $6. The sudden increase in demand for Omisego seems to be fueled by the increased usage of the scaling solution for the ETH protocol. Tether is the biggest stablecoin by market capitalization which announced that USDT is live on the OMG network.
The integration will help ease the congestion of EThereum’s blockchain and will also provide faster and cheaper transactions for the users of the stablecoin, as the CEO of OMG Network Vansa Chatikavanij 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.”
The announcement was combined with the hot market action which means that the speculators poured into this token and entered the buying frenzy. The data shows that the number of OMG-related mentions on different social media networks surged by more than 14x in the past two days. The chatter around the token allowed it to move it to the first spot on the emerging trend lists by Santiment. The increased attention is not always considered as a good sign for the continuation of the uptrend. So when the prices pump and the crowd starts paying attention, the dump usually follows shortly after.
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