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Olench recorded a new historical peak; Reasons for 100% growth in the price of oolong

Following the $ 230 million investment of several large companies during the Avalanche financing period, the price of this digital currency reached its historic high of $ 76. Experts believe that the growth of the ecosystem and the increase in investment in this first layer protocol have been the main reasons for the increase in the price of oolnch.

to the Report Coin Telegraph’s digital currency hit $ 68.89 on Thursday. Olench has recently reached a point where it can now challenge Ethereum’s dominance among smart contract platforms. According to the official Olench website, this first-tier protocol can process 4,500 transactions per second, and the final approval time for each transaction will be less than 2 seconds.

Market data show that the Olench price has risen more than 111 percent since reaching the $ 32.10 price level on September 7th. Trading volume also grew by 200% to $ 2.8 billion. It is worth mentioning that at the time of writing this report, each ounce unit is traded at a price of about $ 72, and the peak of the last 24 hours and, of course, the historical peak of the price has been at the level of $ 76.

Olench recorded a new historical peak;  Where is the next destination?
Olench Price Chart (4-Hour Olench Market View / Dollar)

One of the reasons for the increase in Olench price is the end of the $ 230 million financing period by large investment companies, which was accompanied by continued inflow of cash into the Olench network. Slowly

Big investors come to Olench

The price jump on Thursday was announced after several investment firms were announced, including Polychain Capital, Three Arrows Capital and Dragonfly Capital, during the $ 230 million financing period of Ulnch. Have participated.

This is the largest investment in the history of the Olench ecosystem, indicating that institutional investors’ interest in Ethereum’s competitors is growing.

Blockchain Olench is a medium-chain, Ethereum-compatible network, which means that any token and project operating in the Ethereum network can migrate to the Olench ecosystem and benefit from its capabilities and lower cost.

Since the full launch date of the second version of Ethereum has not yet been announced and it is unclear what features the new structure will have, networks like Olench now have a chance to show they are a better choice; An issue that could lead to the growth of the share of these networks in the digital currency market.

Also read: What is the AVAX Olench Protocol and Digital Currency?

Injecting liquidity and growing the value of locked-in capital

The second reason for the significant increase in the price of the oolong was the continuous transfer of capital from networks such as Ethereum to the digital currency network, which was done with the aim of participating in the decentralized financial ecosystem (DeFi) of the oolong.

Documentation of this transfer of capital can be seen in the data on the value of locked capital of the Defi Llama platform, which shows that the value of locked capital in the Olench protocol has increased rapidly since August 19 and reached its historic peak on Thursday. It has reached $ 17 billion.

Olench recorded a new historical peak;  Where is the next destination?
Diagram of the value of locked capital in the Olench protocol

The increase in locked-in capital has been driven by the launch and growth of several successful protocols in the Olench network, including the Benqi, Trader Joe, and Pangolin protocols.

Collaboration with other projects

The third factor influencing the growth of oolong prices over the past weekend was the news of cooperation and integration with other networks active in the field of digital currency, which has attracted the attention of investors.

The Olench NFT Token Ecosystem has faced an influx of enthusiasts thanks to the network’s partnership with Topps. The company, which specializes in the production of cards and memorabilia for teams and sports personalities, has launched its own collection of unique tokens called Inception on the Olench network.

The Aave community, one of the top Defy protocols in the digital currency ecosystem, has recently been voting to launch a copy of its protocol on the Olench network. The positive opinion of the Avi community on this issue can increase the value of the locked capital in the Olench network, because in this case, the capital held in the Avi protocol and the Ethereum network can be transferred to the Olench.

The data show that the Olench market situation seemed favorable a few days before the price jump.

The VORTECS score, provided exclusively by Coin Telegraph, is an algorithmic comparison of historical background and current market situation that is obtained by combining several different types of data, including market sentiment, trading volume, recent price fluctuations, and Twitter user activity.

Olench recorded a new historical peak;  Where is the next destination?
Vertex Olench price comparison and rating chart

As can be seen from the chart above, the Vertex Olench score entered the green zone last Monday and peaked at 86 levels 24 hours before the price of this digital currency rose 40% in 2 days.


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