Wednesday, January 19, 2022

Cosmos (ATOM) rallies after launching a cross-chain bridge and wrapped Bitcoin

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Momentum for the highest layer-one protocols has been on the rise all through August because the extremely anticipated rollout of the London laborious fork on the Ethereum (ETH) community has finished little to deal with the community’s excessive transaction charges and delayed confirmations. 

One of many largest beneficiaries of the search to discover a extra welcoming good contract atmosphere has been Cosmos (ATOM), a venture targeted on interoperability that has got down to turn out to be the “web of blockchains” because of its Inter-Blockchain Communication (IBC) protocol.

Information from Cointelegraph Markets Pro and TradingView exhibits that the value of ATOM rallied 180% from a low of $8.87 on July 20 to a excessive of $24.77 on Aug. 22 as its 24-hour buying and selling quantity surged from a median of $250 million to $1.87 billion.

ATOM/USDT 4-hour chart. Supply: TradingView

Three causes for the sturdy displaying from ATOM over the previous month embody the discharge of decentralized finance protocols on the community, the launch of a sidechain that allows the alternate of property between Cosmos and Ethereum and the announcement of plans to carry Bitcoin (BTC) to the Cosmos ecosystem.

Increasing DeFi capabilities

Decentralized finance (DeFi) has been one of many largest developments to emerge from the blockchain ecosystem over the previous couple of years and is ready to revolutionize the normal monetary sector.

The current launch of the primary functioning consumer interface for DeFi on Cosmos, often called Emeris, has been one of many largest movers of ATOM value of late as a result of the introduction of cross-chain alternate capabilities excited members of the Cosmos group and led to a spike in demand for the token.

By way of the brand new interface, customers can entry various cross-chain DeFi protocols on the Cosmos community and commerce property on blockchains like IRISnet (IRIS), Persistence (XPRT) and the Akash Community (AKT).

Ethereum bridge opens up opportunitie

A second cause for the ATOM rally is the combination of Sifchain with the IBC, which made the venture the primary decentralized alternate to allow trades between the Cosmos ecosystem and the Ethereum community.

Ethereum at the moment hosts many of the high smart-contract protocols for DeFi and NFTs and this integration permits customers of each ecosystems to simply commerce property between the 2 networks.

Wrapped Bitcoin involves Cosmos

A 3rd cause for the present bullish momentum comes from an Aug. 23 announcement that the Interchain Basis (IFC), a company that funds improvement grants within the Cosmos ecosystem, had granted funding to the Interlay improvement fund for bringing Bitcoin to the Cosmos community.

Bitcoin is the plain chief of the crypto market and it holds a overwhelming majority of the gathered wealth of the ecosystem, so the flexibility to function on Cosmos has the potential to carry new customers to the community.

Interlay makes use of a lock-up and vault know-how that lets customers safe their Bitcoin and mint totally collateralized interBTC that can be utilized in lots of DeFi initiatives and the characteristic is already accessible as a Polkadot parachain.

This integration will enable BTC for use within the Cosmos DeFi ecosystem and it’ll carry deep liquidity and a rise in utility to the community.

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it’s best to conduct your personal analysis when making a call.