3 reasons why Cosmos (ATOM) price is near a new all-time high
Interoperability of blockchain networks is shaping up to be one of the major themes for the bitcoin ecosystem in 2022. New people are continuing to join the crypto world, and both new and established projects are looking for the chain that will best satisfy their protocol and community’s demands.
Cosmos, a project that focuses on easing communication between disparate networks, is one initiative that has 2022 off to a good start (ATOM). This project bills itself as “the internet of blockchains,” with the goal of facilitating the creation of a decentralised economy that is interconnected.
The development of a cross-chain bridge, which makes the protocol Ethereum Virtual Machine (EVM) compatible, and an upcoming Theta upgrade, which will rapidly extend the ecosystem of connected chains and applications, are two of the causes for ATOM’s rising price.
Cosmos nears EVM compatibility
The launch of Evmos, an EVM-compatible protocol that will allow assets and projects on the Ethereum (ETH) network to transition to the Cosmos ecosystem, is the most significant development that has boosted ATOM.
There had been no method for Ethereum-based projects to interface with the Cosmos ecosystem until now. The amount of projects and tokens that could interact with DeFi and NFT projects in the Cosmos ecosystem was dramatically reduced as a result.
Gravity Bridge, which debuted on December 15, is another project aimed at facilitating asset bridging between Ethereum and Cosmos. It now runs as an independent chain. Plans are in the works to move to the Cosmos Hub in early 2022.
Preparing for the Theta upgrade
A second event that has boosted Cosmos’ spirits is the protocol’s planned Theta upgrade, which is set to take place on March 31.
The addition of meta-transactions, where transactions can be submitted by distinct accounts that get tips, and the introduction of inter-chain accounts, which allow users to manage accounts across several blockchains, are two of the new features included in the upgrade. Liquid staking is another feature, which allows users can utilise the value of staked assets in other sections of the Cosmos ecosystem.
NFT modules are included in the Theta upgrade, allowing for easy management of NFT IDs, their owners, and associated data.
Expanding ecosystems are typically bullish
The ecosystem’s expansion to 28 active, interconnected chains with a total value of more than $68 billion is a third cause for ATOM’s positive momentum.
The Binance Smart Chain, Terra (LUNA), and Crypto.com (CRO) are among the more established chains that have joined the Cosmos ecosystem, while the major projects employing Cosmos’ software development kit (SDK) include Osmosis (OSMO), Secret (SCRT), Oasis Network (ROSE), and Kava (KAVA).
The number of chains connected to the Cosmos Hub is anticipated to grow as bridge protocols connecting Cosmos to other EVM-compatible networks are implemented. This will result in a rise in the ecosystem’s total value.