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 arduous fork on the Ethereum (ETH) community has achieved little to deal with the community’s excessive transaction charges and delayed confirmations. 

One of the most important beneficiaries of the hunt to search out a extra welcoming sensible contract surroundings has been Cosmos (ATOM), a venture centered on interoperability that has got down to turn into the “web of blockchains” because of its Inter-Blockchain Communication (IBC) protocol.

Data from Cointelegraph Markets Pro 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. Source: 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 allows the alternate of belongings between Cosmos and Ethereum and the announcement of plans to carry Bitcoin (BTC) to the Cosmos ecosystem.

Expanding DeFi capabilities

Decentralized finance (DeFi) has been one of many largest developments to emerge from the blockchain ecosystem over the previous couple of years and is ready to revolutionize the normal monetary sector.

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

Through the brand new interface, customers can entry a variety of cross-chain DeFi protocols on the Cosmos community and commerce belongings on blockchains like IRISnet (IRIS), Persistence (XPRT) and the Akash Network (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 alternate to allow trades between the Cosmos ecosystem and the Ethereum community.

Ethereum at present 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 cause for the present bullish momentum comes from an Aug. 23 announcement that the Interchain Foundation (IFC), a corporation that funds growth grants within the Cosmos ecosystem, had granted funding to the Interlay growth 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 totally collateralized interBTC that can be utilized in lots of DeFi initiatives and the function is already accessible as a Polkadot parachain.

This integration will enable BTC for use within the Cosmos DeFi ecosystem and it can carry deep liquidity and a rise in utility to the community.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Every funding and buying and selling transfer includes threat, you need to conduct your personal analysis when making a resolution.