Coin Spotlight
6 May 2022

Origin Protocol (OGN) in Spotlight

Deepan Datta

In 2022, Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi) have taken the lead in the crypto market, outpacing the growth of every other blockchain segment. However, despite being the fastest-growing segment of the market in the last few months, interacting with DeFi protocols and accessing NFT marketplaces are difficult and somewhat cumbersome tasks for users. And that impacts large-scale/mainstream adoption.

Origin Protocol, a web 3.0 platform with unique technologies and product offerings, is helping users overcome these challenges and making NFTs and DeFi accessible to all. In this week’s Spotlight, we will look at how Origin Protocol is doing this.

Key Metrics

  • Coin Rank: #262
  • Coin Market Capitalization (as of 6th May 2022): $163.2 million
  • Coin Market Dominance: 0.01%
  • Coin Economics: Fixed Supply
  • Coin Total Supply: 1 billion OGN
  • Coin Circulating Supply: 390 million OGN

Technical Analysis: OGN Price Analysis

Outlook: Weak

Origin Protocol
source: tradingview

On analyzing the daily chart, the Origin (OGN) token is demonstrating weakness in momentum and is failing to break above its previous high. Also, it has broken below the 50-EMA* level, and the falling Relative Strength Index (RSI) is also indicating that the bearish momentum will continue.

OGN has already retraced below the 61.8% level of the Fibonacci Retracement chart, which is a quite negative development. If it breaks further (below 78.6%), we could witness more selling at the counter. Alternatively, to reverse the bearish momentum, OGN needs to move up at least 50%, above the 50% and 38.2% of the Fibo retracement level, with strong momentum.

*Exponential Moving Average

A Brief About the Origin Protocol

Origin Protocol is an Ethereum-based platform founded in 2017, by Josh Fraser and Matthew Liu. It was initially involved in the building of a decentralized e-commerce platform. But later, with the evolving scenario in the market, Origin instead chose to work on making NFTs and DeFi more accessible to all.

To simplify the issuance of NFTs for users, it created a new marketplace for their sale called the NFT Launchpad. Origin also launched its own stablecoin, called the Origin Dollar (OUSD), in the DeFi segment. Let’s look at how the Protocol works.

Origin’s NFT Launchpad

Compared to other NFT marketplaces, which only allow the listing and sale of NFTs as digital collectibles, the Launchpad follows a very different approach. With it, Origin sought to create a unique NFT marketplace where digital creators could have greater control over their art and better opportunities to influence the buying behavior of users. Inside the Launchpad, NFT creators can sell their digital assets through custom-built virtual storefronts with unique sales models. But in other NFT marketplaces, for instance, creators simply list their digital assets for display and sale.

Origin’s NFT Launchpad is like an exhibition hall where creators can set up their own custom virtual shop, giving creators greater control over pricing models, sales strategy, and branding, which other marketplaces lack.

Further, it allows users to buy NFTs using credit and debit cards rather than just crypto tokens.

Origin Dollar

The Origin Dollar (OUSD) is a dollar-pegged stablecoin based on Ethereum. It is the first stablecoin in the market that provides an opportunity for automatic and passive earning. It’s possible to make money just by holding coins in the wallet—without having to stake them. At present, the current Annual Percentage Yield (APY) is 5.42%.

It uses other leading DeFi protocols like AAVE, Compound, and Curve to generate interest on OUSD tokens through a process called yield farming.

Yield farming is a complex investment strategy in DeFi and involves staking and lending of cryptocurrencies.

Staking

Origin Protocol also supports what’s known as “staking functionality,” so users can stake OGN tokens in the network’s smart contract. It provides one of the best returns on staked coins in the crypto market. One can earn up to 25% annualized yield on staked tokens and have more predictable and consistent returns.

OGN Tokenomics

OGN is the native token of Origin Protocol and is an ERC-20 token. The primary use cases of OGN tokens include:

  • For staking and earning rewards
  • As a payment token for buying and selling digital art on the NFT Launchpad
  • To pay commissions/advertisement and fees for the promotion of products and the setting up of virtual stores in the Launchpad
  • To participate and vote in network governance proposals

OGN has a total supply of 1 billion tokens, with the following distribution:

  • Foundation Reserves: 31.4%
  • Strategic Sale: 23.8%
  • Team: 20.2%
  • Ecosystem Growth Funds:13%
  • CoinList Sale: 4.8%
  • Advisor Sale: 4.4%
  • Advisor Grants:1.7%
  • Long-term Partnerships: 0.7%

OGN offers token holders several other benefits. For instance, OGN serves as a value accrual token—meaning, its token holders can earn a part of the revenue generated from the sale of NFTs and other digital assets on the platform. Furthermore, OGN’s developers have used revenue generated from the platform to buy back tokens, to stabilize prices and increase the token’s scarcity.

Origin Protocol Future Growth Potential

With its refocused approach towards DeFi and NFT marketplaces, Origin Protocol is likely to witness strong growth in the long term. Its unique product offering makes it distinctive in comparison with other NFT and DeFi protocols. Therefore, as the NFT and DeFi ecosystem continues to expand and evolve with multiple use cases, the platform will continue to expand even as it creates value for token holders.

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

writer

Deepan Datta

Content Writer

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