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3 reasons why Cosmos (ATOM) price is near a new all-time high

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Blockchain community interoperability is shaping as much as be one of many essential themes for the cryptocurrency ecosystem in 2022. New customers are persevering with to onboard into the rising world of crypto whereas each new and established initiatives seek for the chain that can finest serve the wants of their protocol and group. 

One challenge that has 2022 off to a bullish begin due to its deal with facilitating the communication between separate networks is Cosmos (ATOM). This challenge payments itself as “the web of blockchains” and seeks to facilitate the event of an interconnected decentralized financial system.

Knowledge from Cointelegraph Markets Pro and TradingView reveals that since hitting a low of $25.06 on Dec. 30, the value of ATOM has rallied 75% to hit a each day excessive at $43.98 on Jan. 4 as its 24-hour buying and selling quantity spiked to $2.54 billion.

ATOM/USDT 1-day chart. Supply: TradingView

Three causes for the surging worth of ATOM embody the launch of a cross-chain bridge which makes the protocol Ethereum Digital Machine (EVM) appropriate and an upcoming Theta improve which is able to quickly develop the ecosystem of linked chains and purposes.

Cosmos nears EVM compatibility

Probably the most important growth that has supplied a lift to ATOM is the rollout of Evmos, an EVM-compatible protocol that can permits property and initiatives that function on the Ethereum (ETH) community emigrate over to the Cosmos ecosystem.

Up thus far, there had not been a means for Ethereum-based initiatives to work together with the Cosmos ecosystem. This considerably restricted the variety of initiatives and tokens that might work together with DeFi and NFT initiatives within the Cosmos ecosystem.

Gravity Bridge, which launched on Dec. 15, is one other challenge devoted to facilitating the bridging of property between Ethereum and Cosmos and at the moment it operates as a standalone chain. Plans emigrate to the Cosmos Hub in early 2022 are at the moment underway.

Making ready for the Theta improve

A second growth that has put wind within the sails of Cosmos is the protocol’s upcoming Theta improve which is scheduled for March 31.

A number of the new options included within the improve embody the addition of meta-transactions, the place transactions may be submitted by separate accounts that obtain suggestions and the introduction of inter-chain accounts which permit customers to handle accounts throughout a number of blockchains. One other function is liquid staking, a system the place customers make the most of the worth of staked property in different components of the Cosmos ecosystem.

The Theta improve additionally consists of NFT modules, which allow the straightforward administration of NFT identifiers, their homeowners and related knowledge.

Associated: ROSE gains 54% in a week as Oasis Network ecosystem expands

Increasing ecosystems are sometimes bullish

A 3rd motive for the bullish momentum of ATOM is ecosystem’s enlargement to twenty-eight stay, interconnected chains that complete greater than $68 billion in complete worth.

A number of the extra established chains which have joined the Cosmos ecosystem embody the Binance Good Chain, Terra (LUNA) and Crypto.com (CRO), whereas the most important initiatives utilizing Cosmos’ software program growth package (SDK) embody Osmosis (OSMO), Secret (SCRT), Oasis Community (ROSE) and Kava (KAVA).

Because the bridge protocols linking Cosmos with different EVM-compatible networks are established, the variety of chains linked to the Cosmos Hub is prone to improve. This may convey a rise within the complete worth of the ecosystem together with it.

VORTECS™ knowledge from Cointelegraph Markets Pro started to detect a bullish outlook for ATOM on Dec. 29, previous to the latest worth rise.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mix of information factors together with market sentiment, buying and selling quantity, latest worth actions and Twitter exercise.

VORTECS™ Rating (inexperienced) vs. ATOM worth. Supply: Cointelegraph Markets Pro

As seen within the chart above, the VORTECS™ Rating for ATOM started to select up on Dec. 28 and climbed to a excessive of 81 simply as the value started to extend 67% over the subsequent six days.

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it is best to conduct your individual analysis when making a call.