The interoperability of the blockchain network is emerging as one of the main issues for the cryptocurrency ecosystem in 2022. New users continue to join the growing world of cryptocurrencies, while both new and established projects look for the chain that will best serve them. needs of your protocol and community.
One project that has gotten off to a bullish start in 2022 thanks to its focus on facilitating communication between separate networks is Cosmos (ATOM). This project calls itself “the Internet of blockchains” and seeks to facilitate the development of an interconnected decentralized economy.
Data from Cointelegraph Markets Pro and TradingView show that Since hitting a low of $ 25.06 on December 30, ATOM’s price has rallied 75% to hit a daily high of $ 43.98 on January 4, as its daily trading volume soared to $ 2.54 billion.
Three reasons for ATOM’s price increase include the launch of a cross-chain bridge that makes the Ethereum Virtual Machine (EVM) protocol compliant and an upcoming Theta update that will rapidly expand the ecosystem of chains and connected applications.
Cosmos gets closer to EVM compatibility
The most significant development that has given ATOM a boost is the launch of Evmos, an EVM-compliant protocol that will allow assets and projects operating on the Ethereum (ETH) network to migrate to the Cosmos ecosystem.
@EvmosOrg is an application-agnostic @cosmos chain ⚛️@EvmosOrg will be interoperable with @Ethereum, EVM-compatible environments, and other chains via IBC, making it easy to move value across chains ⛓
Learn about @EvmosOrg network architecture https://t.co/VfDiYxVkte pic.twitter.com/20iMai6B3Z
– Figment (@Figment_io) December 7, 2021
EvmosOrg is an application agnostic Cosmos chain @EvmosOrg will be interoperable with Ethereum, EVM compatible environments and other chains via IBC, facilitating the movement of value between chains.
Up to this point, there was no way for Ethereum-based projects to interact with the Cosmos ecosystem. This significantly limited the number of projects and tokens that could interact with the DeFi and NFT projects in the Cosmos ecosystem.
Gravity Bridge, which launched on December 15, is another project dedicated to facilitating asset bridging between Ethereum and Cosmos and currently operates as an independent chain. Plans to migrate to the Cosmos Hub in early 2022 are currently underway.
Preparing for the Theta update
A second development that has put wind in the sails of Cosmos is the next Theta update of the protocol, which is scheduled for March 31.
Some of the new features included in the update include the addition of metatransactions, where transactions can be submitted by separate accounts that receive advice, and the introduction of cross-chain accounts that allow users to manage accounts on multiple blockchains. Another feature is the liquid bet, a system in which users use the value of assets wagered in other parts of the Cosmos ecosystem.
Theta update also includes NFT modules, which allow for simple management of NFT identifiers, their owners, and associated data.
Expanding ecosystems are often optimistic
A third reason for ATOM’s bullish momentum ands the expansion of the ecosystem to 28 active interconnected chains totaling more than USD 68 billion in total value.
Cosmos is the only cross-chain ecosystem in the world that uses an interoperability standard.#CosmosFactshttps://t.co/HwBEUuchyP pic.twitter.com/9b9YRyLfVS
– Cosmos – Internet of Blockchains ⚛️ (@cosmos) December 30, 2021
Cosmos is the only cross-chain ecosystem in the world that uses an interoperability standard.
Some of the more established chains that have joined the Cosmos ecosystem include Binance Smart Chain, Terra (LUNA) and Crypto.com (CRO), while larger projects using the Cosmos Software Development Kit (SDK) include Osmosis (OSMO), Secret (SCRT), Oasis Network (ROSE) Y Kava (KAVA).
As the bridging protocols linking Cosmos to other EVM-compliant networks are established, the number of chains connected to the Cosmos Hub is likely to increase. This will bring about an increase in the total value of the ecosystem.
VORTECS ™ data from Cointelegraph Markets Pro began to spot a bullish outlook for ATOM on December 29, ahead of the recent price surge.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements, and trading activity. Twitter
As seen in the graphic above, The VORTECS ™ Score for ATOM began to rebound on December 28 and rose to a high of 81 just as the price began to increase 67% over the next six days.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.
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