The interoperability of the Blockchain network is emerging as one of the main issues for the cryptocurrency ecosystem in 2022. New users continue to join the growing world of cryptocurrencies, while both new and established projects look for the chain that best suits to the needs of its customers. protocol and community.
One project that has gotten off to a bullish start in 2022 thanks to its focus on facilitating communication between separate networks is Cosmos (ATOM). This project calls itself โthe Internet of blockchainsโ and seeks to facilitate the development of an interconnected decentralized economy.
Data of Cointelegraph Markets Pro Y TradingView shows that since hitting a low of $ 25.06 on Dec 30, ATOM's price has rallied 75% to hit a daily high of $ 43.98 on Jan 4 as its 24-hour trading volume soared to $ 2,540 million.
Three reasons for ATOM's price increase include the launch of a cross-chain bridge that makes the Ethereum Virtual Machine (EVM) protocol compliant and an upcoming Theta update that will rapidly expand the ecosystem of chains and connected applications.
Cosmos gets closer to EVM compatibility
The most significant development that has given ATOM a boost is the launch of Evmos, an EVM-compliant protocol that will enable assets and projects that operate on Ethereum (ETH) network to migrate to the Cosmos ecosystem.
@EvmosOrg is a standalone app @cosmos chain โ๏ธ@EvmosOrg will be interoperable with @Ethereum, Environments compatible with EVM and other chains through IBC, facilitating the transfer of value between chains โ
Learn about @EvmosOrg architecture network https://t.co/VfDiYxVkte pic.twitter.com/20iMai6B3Z
- Figment (@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 limited the number of projects and tokens that could interact with the DeFi and NFT projects in the Cosmos ecosystem.
Gravity bridge which was released on December 15, is another project dedicated to facilitating the asset bridge between Ethereum and Cosmos and currently operates as an independent chain. Plans to migrate to the Cosmos Hub in early 2022 are currently underway.
Preparing for the Theta update
A second development that has put wind in the sails of Cosmos is the next Theta update of the protocol, which is scheduled for March 31.
Some of the new features included in the update include the addition of metatransactions, where transactions can be submitted by separate accounts that receive advice, and the introduction of cross-chain accounts that allow users to manage accounts on multiple blockchains. Another feature is the liquid bet, a system in which users use the value of assets wagered in other parts of the Cosmos ecosystem.
Theta update also includes NFT modules, which allow for simple management of NFT identifiers, their owners, and associated data.
Related: ROSE Gains 54% in One Week as Oasis Network Ecosystem Expands
Expanding ecosystems are often optimistic
A third reason for ATOM's upward momentum is the expansion of the ecosystem to 28 living interconnected chains totaling more than $ 68 billion in total value.
Cosmos is the only cross-chain ecosystem in the world that uses an interoperability standard.#CosmosFactshttps://t.co/HwBEUuchyP pic.twitter.com/9b9YRyLfVS
- Cosmos - Internet de Blockchains โ๏ธ (@cosmos) December 30, 2021
Some of the more established chains that have joined the Cosmos ecosystem include Binance Smart Chain, Terra (LUNA), and Crypto.com (CRO), while larger projects using the Cosmos software development kit (SDK) include Osmosis (OSMO), Secret (SCRT), Oasis Network (ROSE) and Kava (KAVA).
As the bridging protocols linking Cosmos to other EVM-compliant networks are established, the number of chains connected to the Cosmos Hub is likely to increase. This will bring about an increase in the total value of the ecosystem.
VORTECS โข data from Cointelegraph Markets Pro began to spot a bullish outlook for ATOM on December 29, ahead of the recent price spike.
The VORTECS โข 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 trading activity. Twitter
As seen in the chart above, the VORTECS โข score for ATOM began to rebound on December 28 and rose to a high of 81 just as the price began to increase 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 business move involves risk, you should do your own research when making a decision.
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