Omicron token, one of the lesser-known cryptocurrencies, has exploded after news of the new Covid-19 variant was announced with the same name. Omicron (OMIC) surged by nearly 1000%, to hit an all-time high of $689, gaining 200% in a day, moving from a trading price of $65 on Saturday.
While cryptocurrencies have a reputation for volatility, Bitcoin and other leading altcoins in the digital currency industry have found relative stability. However, this sharp trajectory has shown signs of a bubble waiting to burst, as expressed by crypto analyst Mr Whale.
A crypto token named after the new COVID-19 variant ‘Omicron’ is up over 650% within the 3 days, and is now worth over $400 million.
If this isn’t a sign we’re in a giant bubble, I don’t know what is. pic.twitter.com/7ESD1v9wgF
— Mr. Whale (@CryptoWhale) November 28, 2021
What is Omicron token?
Now that Omicron has been put on the cryptocurrency map with the new variant, investors are looking into the functionality of the token beyond an investment asset. As a cryptocurrency, Omicron is a decentralized protocol that operates on Arbitrum, one of the layer-two networks that runs off Ethereum. OMIC token can be traded on SushiSwap and is backed by stablecoin USDC as well as other liquidity provider tokens tied to MIM. As a fork of OlympusDAO, the Omicron token is a relatively new token launched in early November. It is a new network, but the timing appears to be purely coincidental with the announcement of the new Covid-19 strain that has given traction to the cryptocurrency.
OMIC token surges, Bitcoin slowly regains strength
While OMIC token is gaining, the rest of the cryptocurrency market has suffered with the news of the new variant. Coupled with the “Black Friday sell-off”, there has been a drop in the market with Bitcoin dropping 20% from its recently tagged all-time high. However, despite the drop at the end of the week, Bitcoin has picked up nearly 6% heading into the new week.