The cryptocurrency market began off the brand new yr on a tepid be aware. Most high cryptos together with bitcoin and ether have been underneath stress. Nonetheless, one token that appears unfazed by the broader market path is Cosmos’ native token ATOM.
ATOM has gained almost 790 % in a yr and almost doubled within the final month. However why has it been defying the market pattern? There is likely to be a number of components for it, beginning with the character of the Cosmos community itself.
The Cosmos challenge claims to resolve one of many largest issues within the blockchain business, interoperability or the method of operations between two or extra blockchains. It goals to handle points within the blockchain house like scalability, price and environmental affect by providing an ecosystem of related blockchains.
One of many main considerations is the degrees of fragmentation seen in blockchain networks. There are a whole bunch of blockchains however just a few can effectively talk with one another. Cosmos is trying to handle this downside by establishing an Interblockchain Communication protocol.
One other contributing issue is Cosmo’s launch of Evmos, an application-agnostic chain linked to the crypto. This protocol permits Ethereum-based belongings and initiatives to maneuver simply throughout the Cosmos community. This was an enormous transfer as there have been no interconnections between Ethereum and Cosmos earlier than this.
In accordance with a Cointelegraph telegraph, Gravity Bridge, launched on December 15, is one other challenge devoted to facilitating the bridging of belongings between Ethereum and Cosmos. Whereas the challenge at present operates as a standalone chain, the migration to the Cosmos Hub is underway and anticipated to be accomplished early this yr.
The third cause for this worth bounce might be the community’s growth to twenty-eight reside interconnected chains with a complete worth of roughly $68 billion. The numerous interconnections embody networks like Binance Sensible Chain, Terra (LUNA) and Crypto.com (CRO).
The Theta improve scheduled for March 31 has additionally stored the token sturdy. The improve, in accordance with Cointelegraph, will add just a few new options akin to meta-transactions. This can permit the submission of transactions by separate accounts that obtain suggestions and the introduction of inter-chain accounts that lets customers handle accounts throughout a number of blockchains. Liquid staking, a system the place customers utilise the worth of staked belongings in different elements of the Cosmos ecosystem, may also be launched with this improve.
ATOM is at present buying and selling over 6 % increased at $39.04 and its complete market cap is sort of $9 billion, in accordance with information from Coinmarketcap.