Just after the network expanded out its DeFi environment and began working on cross-chain bridges for ETH and BTC, the ATOM value soared into the triple figures.
The widely expected distribution of the London hard fork just on the Ethereum network has accomplished almost nothing to solve the network’s excessive processing fees and late validation. Therefore, momentum for the leading layer protocols is now on the upswing since August.
Cosmos ATOM, a program centered on interoperability that has started out to establish the internet of blockchains courtesy towards its Inter-Blockchain Communication protocol, has become one of the major benefactors of the search for a more inviting smart agreement ecosystem.
The value of ATOM rose 180 percent from a minimum of $8.87 on July 20 to a maximum of $24.77 on August 22, according to data from Cointelegraph Markets Pro and Trading View. Its 24-hour volume of dealing increased from $250 million to $1.87 billion.
Expanding DeFi Capabilities
The introduction of decentralized financial algorithms on the network, the creation of a side-chain that facilitates property exchange amongst Cosmos and Ethereum, and the news of plans to integrate Bitcoin into the Cosmos ecosystem are three explanations for ATOM’s outstanding performance over the past month.
Decentralized banking has emerged as one of the most significant advancements in the blockchain environment in recent years, with the potential to completely change the traditional financial system.
Ever since the advent of cross-chain trading abilities, delighted participants of the Cosmos ecosystem contributed to a surge in interest for the token. Indeed, the current unveiling of the first operational user interface for DeFi on Cosmos, known as Emeris, has become one of the greatest drivers of ATOM price recently.
Finally, people can download a variety of cross-chain DeFi guidelines on the Cosmos platform through the new interface. This includes trade commodities on blockchains such as IRISnet or IRIS, Persistence, or XPRT. Lastly, this includes the Akash Network or AKT.
Ethereum Bridge Opens Up Opportunities
A secondary reason for the ATOM increase is Sifchain’s connection to the IBC. Wherein it made the company the first decentralized trade to allow trading between the Cosmos ecosystem and the Ethereum network.
Many of the leading smart-contract algorithms for DeFi and NFTs are hosted on Ethereum. This integration however enables consumers of both communities to effortlessly transfer assets amongst them.
Wrapped Bitcoin Comes to Cosmos
The Interchain Foundation, or IFC, a body that finances innovation projects in the Cosmos ecosystem, said on Aug. 23 that this had awarded financing to the Interlay investment program for adding Bitcoin to the Cosmos network. As a result, this is a third cause for the present positive trend.
Also, Bitcoin is the undisputed monarch of the cryptocurrency sector. It has the great bulk of the ecosystem’s wealth under its control. The capability to function on Cosmos has the opportunity to encourage new customers.
Besides, users can protect their Bitcoin with Interlay’s clamp and vault mechanism. It can issue fully collateralized interBTC that can be used in a number of DeFi applications. This feature is now ready as a Polkadot parachain.
BTC can be in the Cosmos DeFi ecosystem as a result of this integration. Hence, it gives the network more liquidity and usefulness.
It’s suitable for a wide range of DeFi applications. Consequently, this feature is now ready as a Polkadot parachain.
Finally, this integration will permit BTC usage in the Cosmos DeFi ecosystem, providing the network with increased liquidity and functionality.
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