The cryptocurrency market began off the brand new 12 months on a tepid notice. Most high cryptos together with bitcoin and ether have been underneath strain. Nonetheless, one token that appears unfazed by the broader market route is Cosmos’ native token ATOM.
ATOM has gained practically 790 % in a 12 months and practically doubled within the final month. However why has it been defying the market pattern? There may be a number of components for it, beginning with the character of the Cosmos community itself.
The Cosmos mission claims to resolve one of many greatest issues within the blockchain trade, 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 influence 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 seeking 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 property and tasks to maneuver simply inside 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 mission devoted to facilitating the bridging of property between Ethereum and Cosmos. Whereas the mission presently operates as a standalone chain, the migration to the Cosmos Hub is underway and anticipated to be accomplished early this 12 months.
The third purpose for this worth leap may very well be the community’s growth to twenty-eight stay interconnected chains with a complete worth of roughly $68 billion. The varied interconnections embrace networks like Binance Sensible Chain, Terra (LUNA) and Crypto.com (CRO).
The Theta improve scheduled for March 31 has additionally saved the token sturdy. The improve, in accordance with Cointelegraph, will add a couple of new options equivalent 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 property in different elements of the Cosmos ecosystem, may also be launched with this improve.
ATOM is presently buying and selling over 6 % greater at $39.04 and its whole market cap is sort of $9 billion, in accordance with information from Coinmarketcap.