Network congestion and high transaction costs on the Ethereum (ETH) network have been a persistent problem for investors and developers over the past year, and this has put blockchain projects in the spotlight that offer a solution to these problems.
One class of tokens that has increased both trading volume and price over the past two months are gas tokens, which support transactions on their respective blockchain networks.
Data from Cointelegraph Markets and TradingView show that Gas (GAS), Ontology Gas (ONG) and VeThor Token (VTHO) have increased prices by more than 300% since early February, thanks to increased attention to dual token models.
VTHO / USDT
VeThor Token is one of the two tokens launched on VeChain Thor’s public blockchain after the project was rebranded in 2018. VeChain (VET) is the platform’s native token and acts as the primary value transfer token, while VTHO is a VIP token 180 standard tokens, meaning that it represents the cost of transactions on the VeChain Thor blockchain.
From a low of $ 0.00125 on February 1, VTHO’s price rose 615% to a high of $ 0.00897 on February 13, thanks to a record trading volume of $ 325 million. After a correction that dropped the price to $ 0.0037, VTHO is now rising again and trading above $ 0.008.
VTHO is inextricably linked to the overall functionality of VeChain Thor, as it also represents the intelligent contract layer of the network and handles all transactions and intelligent contract executions.
As part of the dual token model, VTHO is automatically distributed to VET holders, with prices ranging from 1.4% to 1.9% depending on the wallet provider. This is similar to the engagement bonus model and provides additional incentives for those who are completing vocational training.
GAS / USD
Neo (NEO) was one of the first projects to popularize the dual token model, in which network transactions were paid for with gas (GAS).
Similar to the VeChain Thor token model, users who keep Neo in a wallet they control will automatically receive 1.61% stake rewards paid out in the form of GAS.
Enthusiasm for GAS increased in early February as information grew on the launch of Neo3 along with the development of cross-chain bridges to Ethereum and the Binance Smart Chain.
GAS was trading at a low of $ 1.79 on February 1, before the record trading volume of $ 1.5 billion rose to a high of $ 15.80 on February 21, as did transaction fees on the Ethereum network rose to its highest level in 6 months.
While gas fees on Ethereum have fallen by more than half since February 23, the high price of Ether continues to make network transactions unmanageable for the average user, while transactions on the Neo-Blockchain cost an average of 0.001 GAS.
As the Neo ecosystem expands with the growth of DeFi platforms like Flamingo Finance and Switcheo’s decentralized exchange, GAS can gain further benefits by offering a firmer, more cost-effective alternative to blockchain transactions.
ONG / USDT
Ontology Gas is the transaction token of the Ontology (ONT) blockchain, which specializes in the management of digital identity and data.
Users holding ONT in eligible wallets can earn an average of 8.56% interest paid in the form of ONG that can be traded or used to pay transaction costs.
The central features of the ontology network include ONT ID, the digital ID application used throughout the ecosystem, and the decentralized data exchange DDFX, which enables data tokenization, data tracking and cross-system data processing.
Ontology was developed to support cross-chain integration and scalability of Layer 2. Projects like the Wing.finance DeFi platform, which provides support for Neo and Ethereum-based tokens, as well as the ONTO wallet, which recently added support for 12 separate blockchains including Polkadot (DOT) and the Binance Smart Chain
As activity on the Ontology network began to spike and its ecosystem expanded, ONG saw a price rally of 480% from $ 0.196 on Feb.1 to a high of $ 1.137 on Feb.21, with the token reaching a record $ 1.42 billion. USD reached within 24 hours.
All transactions in the network are dependent on ONG for completion. As Ontology’s ecosystem continues to grow, ONG is likely to see a sharp surge in demand that could lead to further price increases.
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