Vitalik Buterin’s Plasma-Tech narrative could fuel bullish outlook in MATIC, OMG, LOOM, TON
|- Vitalik Buterin predicted the return of blockchain scaling solution Plasma, with the rising utility of zero-knowledge technology.
- MATIC, OMG, LOOM and TON are cryptocurrencies that use Plasma technology.
- OMG price rallied 16% on Tuesday, in response to Buterin’s comments on Plasma.
Ethereum founder, Vitalik Buterin, recently published a blog post on Plasma Technology. The scaling solution technique for the Ethereum blockchain is utilized by crypto projects like MATIC, OMG, LOOM and TON.
Buterin’s blog post ushered in double-digit gains in OMG, driving the token to a six month high of $0.77.
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These tokens could rally in response to Plasma-tech narrative
Following the increasing relevance of zero-knowledge rollups and technology, Vitalik Buterin, Ethereum’s creator, proposed the resurgence of ‘Plasma’. The scaling solution to the Ethereum blockchain is the technology behind the OMG token.
Plasma is used to reduce transaction fees and boost the security of protocols. According to crypto metrics firm Layergg, four other tokens utilize Plasma tech.
- MATIC - Polygon Proof-of-Stake employs Sidechain and Plasma technology.
- OMG - Plasma technology for scaling.
- LOOM - Multichain, includes Plasma Cash.
- TON - Plasma or Rollup.
These four cryptocurrencies are associated with Plasma. The resurgence of Plasma and the narrative surrounding the scaling technology and its utility is likely to fuel a bullish outlook among market participants.
On Tuesday, OMG price rallied to $0.809. At the time of writing, OMG is trading at $0.684, after the token shed its gains from November 13. MATIC, LOOM and TON prices are likely to see an increase, in response to Buterin’s narrative.
MATIC, LOOM and TON prices climbed 0.29%, 3.63% and 1.29% in the past 24 hours, respectively.
In his article, Buterin explores the challenges in utilizing Plasma technology to scale Ethereum and proposes system redesign based on a "unspent transaction output" (UTXO) model, addressing fragmentation issues.
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