Interoperability of blockchain networks is expected to be a major theme for the cryptocurrency ecosystem by 2022. As new users continue to join the expanding world of crypto, established projects and existing ones search for the best chain to meet their needs and communities, both old and new users continue to sign up.
Cosmos (ATOM) is a project that has seen a bullish start in 2022, thanks to its focus to facilitate communication between different networks. This project is called “the internet of Blockchains” and aims to promote the development of a decentralized interconnected economy.
Cointelegraph Markets Pro and TradingView data show that ATOM’s price has risen 75% since Dec. 30 when it was at $25.06, and then hit $43.98 on January 4. Its 24-hour trading volume jumped to $2.54 trillion.
ATOM/USDT 1-day chart. Source: TradingView
The launch of a cross chain bridge that makes the protocol Ethereum Virtual Machine compatible (EVM), and the upcoming Theta upgrade, which will quickly expand the ecosystem of connected applications and chains, are two reasons why ATOM’s price has risen.
Cosmos nears EVM compatibility
Evmos is an EVM-compatible protocol which will allow assets and projects operating on the Ethereum network (ETH) to migrate to the Cosmos ecosystem. This is the most important development that has boosted ATOM.
@EvmosOrg is an application-agnostic @cosmos chain @EvmosOrg will be interoperable with @Ethereum, EVM-compatible environments, and other chains via IBC, making it easy to move value across chains Learn about @EvmosOrg network architecture https://t.co/VfDiYxVkte pic.twitter.com/20iMai6B3Z
— Figment (@Figment_io December 7, 2021
There was no way for Ethereum-based projects that could interact with the Cosmos ecosystem up to now. This severely limited the number and types of tokens and projects that could interact with DeFi or NFT projects within the Cosmos ecosystem.
Gravity Bridge was launched Dec. 15 and is another project that facilitates the bridging assets between Ethereum, Cosmos, and other blockchains. Currently it functions as a standalone chain. Plans are underway to move to the Cosmos Hub by early 2022.
Preparing for Theta Upgrade
The protocol’s Theta upgrade, which is scheduled to take place on March 31, is another development that has energized Cosmos.
The upgrade includes meta-transactions that allow transactions to be submitted from separate accounts that receive tips. Inter-chain accounts are also available, which allows users to manage multiple blockchain accounts. Liquid staking is another feature that allows users to use the value of staked assets from other parts of Cosmos.
The Theta upgrade includes NFT modules that allow for the easy management of NFT identifications, their owners, and associated data.
Related: ROSE gains 54% over a week, as Oasis Network ecosystem grows
Expanding ecosystems are generally bullish
The bullish momentum at ATOM can also be attributed to ecosystem’s expansion into 28 interconnected, live chains with a total value of more than $68 Billion.
Cosmos is the only cross-chain ecosystem in the world that uses an interoperability standard.#CosmosFactshttps://t.co/HwBEUuchyP pic.twitter.com/9b9YRyLfVS
— December 30, 2021, Cosmos – Internet of Blockchains(@cosmos).
Some of the most established chains have joined Cosmos, including the Binance Smart Chain and Terra (LUNA), and Crypto.com(CRO). The largest projects that use Cosmos’ software development tool (SDK), include Osmosis and Secret (SCRT), Oasis Network and ROSE and Kava (KAVA).
The number of chains connecting to the Cosmos Hub will increase as bridge protocols are developed linking Cosmos to other EVM-compatible networks. This will lead to an increase in ecosystem value.
Data from Cointelegraph Markets Pro showed that VORTECS(tm), a data source for VORTECS, began to show a bullish outlook on ATOM in December 29, before the recent price increase.
Cointelegraph’s exclusive VORTECS(tm), Score is an algorithmic comparison between historical and current market conditions. It is derived from a combination data points, including trading volume, market sentiment and recent price movements, as well as Twitter activity.
VORTECS(tm), Score (green), vs. ATOM Price. Source: Cointelegraph Markets Pro
The chart shows that the VORTECS(tm), Score for ATOM started to rise on Dec. 28, and reached a peak of 81, just as the price increased 67% in the following six days.
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