The protocol in the Cosmos ecosystem has seen significant growth in 2022 due to its intense focus on blockchain interoperability and compatibility with the Ethereum network.
One protocol that has seen an increase in speed since mid-March is Kava, a project developing a co-chain architecture for the Cosmos and Ethereum networks.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Kava, the native token of Kava, has climbed 72.3% after setting a daily high of $5.03 on April 8 after hitting a low of $2.92 on March 13.
Three reasons for the increase in value and momentum for KAVA include the launch of the Ethereum Co-Chain beta, the launch of the $750 million developer incentive program, and a series of partnerships and protocol launches that have expanded the size of the Kava ecosystem.
Ethereum Co-Chain Beta Launch
One of the most anticipated developments to come out of the Kava ecosystem was the successful completion of the alpha phase of the Ethereum co-chain launch.
Ethereum Co-Chain Alpha was AMAZING!
The beta is live and is already a powerhouse.
Mainnet launched on May 10, 2022! #Cove #EVM pic.twitter.com/tnfyAkeLoN
— Kava Network (@kava_platform) April 7, 2022
The Ethereum co-chain enables support for Ethereum Virtual Machine (EVM) smart contracts while the Cosmos co-chain enables support for the Tendermint consensus engine and Inter Blockchain Communication Protocol (IBC). A translator module links the co-chains and allows seamless interoperability between networks.
The mainnet launch of the Ethereum co-chain is expected on May 10.
Kava launches $750 million developer incentive program
Another reason for Kava’s strength was the March 3 launch of Kava Rise, a $750 million developer incentive program designed to help developers in the Kava community with decentralized finance (DeFi), gaming, and non-fungible projects. .
Kava Rise is an on-chain incentive mechanism that will distribute 62.5% of all block rewards to developers who are building on Kava’s Ethereum and Cosmos co-chains, part of the protocol’s effort to become a builder-owned network. is as. The remaining 37.5% of the block rewards will be distributed to the stakers.
The incentive program is expected to go live with the Kava 10 upgrade, which will also include the launch of the Cosmos and Ethereum co-chain on the Kava mainnet.
related: 3 reasons why the price of Cosmos (ATOM) is nearing a new all-time high
New partnerships and protocol launches
A third factor helping drive demand for Kava is the addition of new partnerships and protocols to the Kava network.
Some of the latest protocols to be launched on the Kava co-chain architecture include NFT marketplace OpenBCA, decentralized finance launchpad Dexpad and DeFi piggy bank WePiggy.
Other recent launches on Kava include the multichain DeFi lending protocol ForTube, the Ruby protocol that brings the first algorithmic stablecoin to the Kava Ethereum Virtual Machine (EVM) and an Ethereum co-chain integration with the Ren protocol.
VORTECS™ data from Cointelegraph Markets Pro recently began to trace a bullish outlook for KAVA on April 1 prior to the price increase.
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 KAVA began to rise on April 1, approximately 94 hours before the price increased by 25% over the next three 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.
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