Interaction with the blockchain network has become one of the main themes for the cryptocurrency ecosystem in 2022. New users continue to connect to the growing crypto world, while new and existing projects are looking for a chain that best suits their protocol needs and society.

A project that has had an optimistic start in 2022, thanks to its focus on facilitating interactions between individual networks, is Cosmos (Atom). This project positions itself as “The Blockchain’s Internet” and seeks to promote the development of a decentralized, interconnected economy.

Data from Cointelegraph Markets Pro and TradingView shows that since reaching $ 25.06 on December 30, ATOM has increased by 75% and reached a daily high of $ 43.98 on January 4, with 24-hour trading volume rising to $ 2. 54 billion. …

ATOM / USDT 1-day chart. Source: TradingView
Three reasons for ATOM’s price increase include the launch of bridge building, which makes the Ethereum Virtual Machine (EVM) protocol compatible, and the upcoming Theta update, which will rapidly expand the ecosystem of connected blockchains and applications.

Cosmos is approaching compatibility with EVM
The most important development driven by ATOM is the rollout of Evmos, an EVM-compliant protocol that will allow assets and projects running on the Ethereum network (ETH) to migrate to the Cosmos ecosystem.

Until this time, projects based on Ethereum had no way of interacting with the Cosmos ecosystem. This significantly reduces the number of projects and tokens that can interact with DeFI and NFT projects in the Cosmos ecosystem.

Launched on December 15, Gravity Bridge is another project aimed at facilitating the merger of assets between Ethereum and Cosmos and currently operates as a separate network. Plans to migrate to Cosmos Hub in early 2022 are underway.

Preparing for theta upgrade
The second event that encouraged Cosmos is the upcoming update of the Theta Protocol, scheduled for March 31.

Some of the new features included in the update include the addition of meta-transactions, where transactions can be submitted by individual accounts receiving questions, and cross-chain registration of accounts, which allows users to manage accounts across multiple blockchains. Another feature is Liquid Staking, a system where users take advantage of the value of assets delivered in other parts of the Cosmos ecosystem.

The theta update also includes NFT modules that make it easy to manage NFT IDs, their owners, and associated data.

About the topic: ROSE increases by 54% in one week as the Oasis Network ecosystem expands.

Expanding ecosystems are usually upward
The third reason for ATOM’s rising momentum is the expansion of the ecosystem to 28 active and interconnected chains, with a total value of more than $ 68 billion.

Some of the more established networks to join 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) and Secret (SCRT). ), Oasis Network (ROSE) and Kava (KAVA).

As bridge protocols are created to connect Cosmos to other EVM-compatible networks, the number of wires connected to Cosmos Hub is likely to increase. This will increase the overall value of the ecosystem along with it.

VORTECS ™ data from Cointelegraph Markets Pro began to define the optimistic outlook for ATOM on December 29, before the recent price increase.

Exclusive to Cointelegraph, VORTECS is an algorithmic comparison of historical and current market conditions based on a number of data points, including market sentiment, trading volume, recent price movements and Twitter activity.

Source: CoinTelegraph

LEAVE A REPLY