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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 laborious fork on the Ethereum (ETH) community has executed 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 good contract setting has been Cosmos (ATOM), a challenge 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 exhibits 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 mean of $250 million to $1.87 billion.

ATOM/USDT 4-hour chart. Supply: TradingView

Three causes for the robust exhibiting from ATOM over the previous month embrace the discharge of decentralized finance protocols on the community, the launch of a sidechain that permits the trade of belongings 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 normal monetary sector.

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

By the brand new interface, customers can entry a lot of cross-chain DeFi protocols on the Cosmos community and commerce belongings on blockchains like IRISnet (IRIS), Persistence (XPRT) and the Akash Community (AKT).

Ethereum bridge opens up opportunitie

A second motive for the ATOM rally is the mixing of Sifchain with the IBC, which made the challenge the primary decentralized trade to allow trades between the Cosmos ecosystem and the Ethereum community.

Ethereum at the moment hosts a lot of the prime smart-contract protocols for DeFi and NFTs and this integration permits customers of each ecosystems to simply commerce belongings between the 2 networks.

Wrapped Bitcoin involves Cosmos

A 3rd motive 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 plain chief of the crypto market and it holds a overwhelming majority of the accrued 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 absolutely collateralized interBTC that can be utilized in lots of DeFi initiatives and the function is already out there 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.

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you must conduct your personal analysis when making a call.