OMG has been around for a while, but it’s gained a lot of attention in the last year. The reason behind this sudden popularity was the worsening of Ethereum’s scalability issue. The OMG network is a scaling solution for Ethereum. It promises to drastically increase transaction speeds and reduce costs. OMG coins are the fuel of the network.
In this article, we’ll look at what may drive that price higher, and give a medium and long-term OMG price prediction.
OMG is the native token of the OMG network. It’s a Thai fintech project that was launched to solve the severe scalability issues that plague Ethereum. It works by hosting transactions away from the Ethereum main net. OMG transactions are hosted on side chains or child chains and are regularly synced with the Ethereum main net. This means hundreds or even thousands of OMG transactions can be settled with a single ETH transaction.
The OMG project has a number of advantages:
- A reliable and secure wallet for each client to exchange crypto online both between blockchains and through payment systems.
- Availability of partnerships with large companies
- Attracts investment from many campaigns
The OMG Network has recently been rebranded as the OMG Foundation. The OMG token is used for staking on OMG in a Proof-of-Stake system. Staking rewards are how holders will get paid for investing in OMG and for their participation in the network. Exact interest rates are not yet published.
History of OMG Price
OMG has had a volatile price history. It started at $0.43 when it launched in 2017 and was a popular investment. By early September 2017, it had smashed the $11 barrier, up over 3,000% in less than two months. After that, it hit a record high of over $25 in 2018. However, OMG took a massive hit after 2018 to drop 90% in less than a year. At this time, it appeared the project might be dead. However, the new name and leadership pushed the crypto to another peak of $19 in 2021 along with most other cryptocurrencies.
Like almost all cryptocurrencies, OMG has dropped in price since the bubble of 2021 but is trading relatively steadily. In 2022, it is trading between $3-6 with a trading volume of about $70 million per day.
How Much Is OMG Worth In Next Years?
There’s a wide range of predictions for the OMG network. Here’s a sample of predictions from reputable expert sources:
One-year OMG expert price forecast:
- capital: $23.48
- com: $6.14
- net: $8.12
- capital: $159.59
- com: $10.43
- net: $36.19
As you can see, there’s a huge difference between the forecasts. Gov.Capital’s AI-based forecasting system predicts a 38x return on OMG over the next five years, while DigitalCoinPrice predicts only a 2x return. This reflects the uncertainty of the future adoption of the OMG project. If it can become a future scalability solution for Ethereum and token stakers are paid adequate rewards, the returns will be large.
Is OMG a Good Choice for Investment?
Even though OMG is based on the Ethereum platform, it remains a much riskier investment than ETH. This is because Ethereum is an established platform. Even with its scalability problems, it is still likely to remain among the leaders. The OMG Foundation has no guarantee of becoming the future scaling solution of Ethereum. So, unlike ETH, it’s possible OMG price will go down to zero.
However, it also has huge upside potential if it can gain traction as a partner with the Ethereum network. All OMG would need to do is reach its previous all-time high, and it would quadruple in value.
Overall, if you’re excited about Ethereum and think OMG can help with its scalability, it’s a great high-risk bet for the future. To reduce your risk of wipeout, it is worth diversifying your investment by simultaneously investing in multiple other cryptocurrencies. For OMG, this can include investing in ETH, as well as other scalability coins such as Polygon.