The price of the Origin Protocol has performed well over the past few months. The OGN token is trading at $0.4730, around 100% above its year-to-date low. As a result, its total market capitalization has increased to approximately $229 million, while its diluted value is $485 million. Nevertheless, its price is still around 86% lower than the 2021 high.
What is the Origin Protocol?
Origin Protocol is a blockchain project that seeks to disrupt the decentralized finance (DeFi) and non-fungible token (NFT) industries. It offers a stablecoin called Origin Dollar (OUSD) which offers holders a daily return. This contrasts with other popular stablecoins like Tether and Terra USD which offer no yield. OUSD has a market value of around $152 million.
Origin Protocol also offers Story, an NFT platform that allows developers to create and sell NFTs to thousands of customers. For sellers, the platform allows them to customize their storefronts and set multiple payment methods. Finally, it has the OGN token, which allows people to stake the original protocol and earn money.
It is not known why the price of the original protocol has increased sharply in recent days. However, we can identify some potential risks it faces. On the one hand, there are signs that the NFT bubble is bursting as high interest rates enter the equation. For example, OpenSea sales fell sharply. The platform’s fee revenue fell 52% in February to around $204 million. The same trend is happening in the DeFi industry, where the total value locked in the network has fallen sharply recently. As rates begin to rise, this trend is likely to continue.
Origin Protocol Price Prediction
On the daily chart, we see that the OGN price has been trending down over the past few weeks. The coin managed to drop over 86% from its all-time high. Closer examination reveals that it has formed a descending channel which is shown in black. The current price is between this channel.
The coin also moved slightly above the 25- and 50-day moving averages, while the Smart Money Index (SMI) pointed higher. Therefore, it is likely that the original price will continue higher as the bulls target the upper side of the channel at $0.82. A drop below the support at $0.34 will invalidate this view.