The interoperability of the Blockchain network is shaping up to be one of the main themes for the cryptocurrency ecosystem in 2022. New users continue to join the growing crypto world as new and existing projects search for the chain that will best meet their needs for the protocol and community.
Project Cosmos (ATOM) is one of the projects that got off to 2022 on a bull run thanks to its focus on facilitating connectivity between discrete networks. This project describes itself as the “Internet of the Blockchain” and seeks to facilitate the development of a decentralized, interconnected economy.
Data from Cointelegraph Markets Pro and TradingView shows that since reaching $25.06 on December 30, ATOM has surged 75% to reach a daily high of $43.98 on January 4 as 24-hour trading volume rose to $2.54 billion.
Three reasons for the high price of ATOM include the launch of a cross-chain bridge making the Ethereum Virtual Machine (EVM) protocol compatible and the upcoming Theta upgrade that will rapidly expand the ecosystem of connected applications and blockchains.
Cosmos Close to Compatibility with EVM
The most significant development that gave a boost to ATOM is the introduction of Evmos, an EVM-compliant protocol that allows assets and projects running on the Ethereum (ETH) network to migrate to the Cosmos ecosystem.
Tweet embed It is a neutral application Tweet embed ⚛️ . seriesTweet embed It will be interoperable with Tweet embedand environments compatible with EVM and other chains via IBC, making it easy to transfer value across chains⛓
– Figment (Figment_io) December 7, 2021
Up until this point, there was no way for Ethereum-based projects to interact with the Cosmos ecosystem. This significantly limits the number of projects and tokens that can interact with DeFi and NFT projects in the Cosmos ecosystem.
Gravity Bridge, which launched on December 15, is another project dedicated to facilitating the bridging of assets between Ethereum and Cosmos and is currently operating as a standalone chain. Plans to migrate to the Cosmos Hub in early 2022 are currently underway.
Preparing for theta upgrade
The second development that has put the winds in Cosmos’ sails is the upcoming Theta upgrade of the protocol which is scheduled for March 31.
Some of the new features included in the upgrade include the addition of meta-transactions, where transactions can be sent by separate accounts that receive tips, and inter-chain accounts entry that allows users to manage accounts across multiple blockchains. Another feature is Liquid Staking, a system in which users use the value of assets accumulated in other parts of the Cosmos ecosystem.
The Theta upgrade also includes NFT modules, which enable simple management of NFT IDs, their owners, and associated data.
Related: ROSE earns 54% in a week as the Oasis . network ecosystem expands
Expanding ecosystems are usually bullish
The third reason for ATOM’s upward momentum is the expansion of the ecosystem into 28 live, interconnected chains with a combined value of more than $68 billion.
– Cosmos – Internet of blockchains ⚛️ (cosmos) December 30, 2021
Some of the more established chains to join the Cosmos ecosystem include Binance Smart Chain, Terra (LUNA), and Crypto.com (CRO), while the largest projects using the Cosmos Software Development Kit (SDK) include Osmosis (OSMO) and Secret (SCRT). ), Oasis Network (ROSE) and Kava (KAVA).
As bridge protocols are established that connect Cosmos to other EVM-compatible networks, the number of threads connected to the Cosmos Hub is likely to increase. This will increase the overall value of the ecosystem along with it.
VORTECS™ data from Cointelegraph Markets Pro began detecting a bullish outlook for ATOM on December 29, before the recent price rally.
The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions drawn from a range of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As shown in the chart above, ATOM’s VORTECS™ result started rising on December 28 and rose to a high of 81 when the price started to rise 67% over the next six days.
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