Blockchain network interoperability is shaping up to be one of the main themes for the cryptocurrency ecosystem in 2022. New users are joining the growing world of crypto, while projects both new and established search for the range that will best meet their needs. Protocol and community.
Cosmos (ATOM) is a project focused on facilitating communication between disparate networks, with an acceleration of 2022. The project bills itself as the “Internet of Blockchain” and seeks to facilitate the development of an interconnected decentralized economy.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $25.06 on December 30th, the price of ATOM is up 75% and reached a daily high of $43.98 on January 4th, as its The 24-hour trading volume has increased to $2.54 billion. ,
Three reasons for the rising price of ATOM include the launch of a cross-chain bridge that makes the protocol Ethereum Virtual Machine (EVM) compatible and an upcoming Theta upgrade that will rapidly expand the ecosystem of connected chains and applications.
Universe is closer to EVM compatibility
The most significant development that has fueled ATOM is the rollout of Evmos, an EVM-compatible protocol that will allow assets and projects operating on the Ethereum (ETH) network to be transferred to the Cosmos ecosystem.
@EvmosOrg is an application-agnostic @universe chain ️@EvmosOrg will interact with @ ethereumEVM-compatible environment, and other chains through IBC, make it easy to move value across chains
know about @EvmosOrg Network Architecture https://t.co/VfDiYxVkte pic.twitter.com/20iMai6B3Z
— picture (@figment_io) December 7, 2021
Up to this point, there was no way for Ethereum-based projects to interact with the Cosmos ecosystem. This significantly limits the number of projects and tokens that can interact with DeFi and NFT projects in the Cosmos ecosystem.
Gravity Bridge, which was launched on December 15th, is another project dedicated to facilitating the bridging of assets between Ethereum and Cosmos and currently operates as a standalone chain. Plans are currently underway to migrate to the Cosmos Hub in early 2022.
Preparing for theta upgrade
A second development that has set Cosmos’ sails up is the protocol’s upcoming theta upgrade which is scheduled for March 31st.
Some of the new features included in the upgrade include the introduction of meta-transactions, where transactions can be submitted by individual accounts that receive suggestions and the introduction of inter-chain accounts that allow users to move across multiple blockchains. Allows you to manage accounts. Another feature is Liquid Staking, a system where users access the value of assets staking in other parts of the Cosmos ecosystem.
Theta upgrade also includes NFT modules, which enable simple management of NFT identifiers, their owners and associated data.
related: ROSE gains 54% in one week as Oasis Networks ecosystem expands
The expansion of ecosystems is usually faster
The third reason for ATOM’s bullish momentum is the expansion of the ecosystem to 28 live, interconnected chains that total over $68 billion in value.
Cosmos is the only cross-chain ecosystem in the world that uses the interoperability standard.#cosmos factshttps://t.co/HwBEUuchyP pic.twitter.com/9b9YRyLfVS
– Cosmos – The Internet of Blockchain ️ (@cosmos) December 30, 2021
Some of the more established chains joining the Cosmos ecosystem include Binance Smart Chain, Terra (Luna) and Crypto.com (CRO), while the largest projects using the Cosmos Software Development Kit (SDK) include Osmosis (OSMO), Secrets included. (SCRT), Oasis Network (ROSE) and Kava (Kava).
As bridge protocols connecting Cosmos to other EVM-compatible networks are established, the number of chains connected to Cosmos Hub is likely to increase. This will simultaneously increase the overall value of the ecosystem.
VORTECS™ data from Cointelegraph Markets Pro began to trace a bullish outlook for ATOM on December 29th, ahead of the recent price hike.
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 Twitter activity.
As seen in the chart above, the VORTECS™ score for ATOM began to rise on 28 December and climbed to a high of 81 with the price rising 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 trading move involves risk, so you should do your own research when making a decision.
