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

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

Momentum for the highest layer-one protocols has been on the rise all through August because the extremely anticipated rollout of the London arduou


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

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

Knowledge from Cointelegraph Markets Professional and TradingView reveals 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 embrace the discharge of decentralized finance protocols on the community, the launch of a sidechain that permits the change 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 greatest developments to emerge from the blockchain ecosystem over the previous couple of years and is ready to revolutionize the standard monetary sector.

The latest launch of the primary functioning consumer interface for DeFi on Cosmos, often known as Emeris, has been one of many greatest movers of ATOM worth of late as a result of the introduction of cross-chain change capabilities excited members of the Cosmos neighborhood and led to a spike in demand for the token.

Via the brand new interface, customers can entry a variety of 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 mixing of Sifchain with the IBC, which made the venture the primary decentralized change to allow trades between the Cosmos ecosystem and the Ethereum community.

Ethereum presently hosts many of the prime 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 corporation 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 simple chief of the crypto market and it holds a overwhelming majority of the collected 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 tasks and the function is already obtainable 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.

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