Recently launched modular blockchain Dymension (DYM) becomes the top gainer in the cryptocurrency market for the second day in a row, rising over 30% again on the second day.
Yesterday, SMOKE increased almost 55% after Dymension main network came out live. Its trading volume skyrocketed more than 7,000% on the day of its debut and maintained a similar level today. So far, the token is up almost 125%, from $3.54 to $7.87 today.
The token quickly became the 65th largest cryptocurrency on the market, surpassing popular meme coins like BONK and tokens from games like The Sandbox and Axie Infinity. The network quickly became popular among the developer community as it is set to be the first platform that will allow developers to create their own application chains using Cosmos Cross-chain technology.
What is Dymension?
Dymension is a modular blockchain ecosystem designed to secure and interconnect application chains, called rollups, through the standardized Inter-Blockchain Communication (IBC) protocol.
It aims to improve the scalability and efficiency of blockchain systems by providing a layer one blockchain system designed to safeguard and link rollups, standardizing them just as the ERC standardizes tokens.
This approach enables the creation of high-speed, deployable modular blockchains, known as RollApps, intended to deliver ultra-fast transaction speeds and address scalability issues inherent to traditional blockchain systems.
Why does Dymension pump?
DYM's huge rise in popularity within hours of its release can be attributed to several factors. The platform provided DYM with a value of $390 million airdrop to more than 528,000 wallets, which strengthened its credibility among the developer community.
The token reached a valuation of $5.2 billion shortly after its launch, despite a rocky start marked by errors and transaction delays. This valuation reflects strong market interest and optimism about the future of the project.
The token has also been listed on major exchanges including KuCoin, Krakenand binance, with trading pairs such as DYM/USDT, among others. These listings have contributed significantly to its accessibility and trading volume, further driving interest and valuation.
Most importantly, the platform's ability to create application-specific blockchains, or RollApps, has positioned it as a leading player in addressing scalability and efficiency challenges in the blockchain space.
These factors have greatly contributed to the popularity of Dymension, driving its value beyond the prices anticipated before launch. Despite this, Binance has marked DYM with a seed tag, indicating its innovative but volatile nature.
It remains to be seen if DYM will be able to maintain its strong performance throughout the week.
