The native token for OMG Network has around doubled within the past week as record Ethereum [ETH] fees lead some investors to look forward towards other layer 2 solutions.
In line with recent data revealed by CoinGecko, OMG tokens have increased 115% from $1.70 USD to $3.65 USD within the past week – with the worth surging by 30% within the past 24 hours.
The rally means OMG’s market capitalisation has surged by approximately $275 Mln since this point last week.
OMG’s price has increased by nearly 1,000% since it fell to its rock bottom of $0.35 USD after the Black Thursday crash earlier in March.
The research head at cryptocurrency exchange BeQuant, Denis Vinokourov, told that OMG Network was benefitting from a “perfect storm” of industry-wide developments.
The ongoing hype around DeFi projects – a subset that has exploded to overflow $6 Bln – has seen a surge in activity on Ethereum, resulting in soaring fees.
There are also reports that the testnet for Eth 2.0 – a new iteration that might make the blockchain platform far more scalable – crashed last week.
As such, investors are starting to look more closely at layer 2 solutions, he added.
Ethereum’s [ETH] average transaction fees rapidly shot up from under $0.10 USD from earlier in January to just over $3.40 USD presently – the primary time fees have stayed so consistently high.