Over the past year, interoperability among different blockchain networks has been a key theme in cryptocurrency markets. However, several major exploits such as the $321million Wormhole exploit have highlighted the challenges in securing cross-chain transfers.
Komodo is an open and composable multichain platform which is home to the AtomicDEX token and non-custodial, decentralized exchange. It has gained traction in February because of its alternative approach to cross-chain interoperability.
Cointelegraph Markets Pro and TradingView data show that the price of the KMD token rose 54% from a low of $0.446 in February 20 to a high of $0.687 in February 22.
KMD/USDT 4-hour chart. Source: TradingView
The three main reasons KMD’s trading volume and price have risen are: support for 13 different blockchain networks with AtomicDEX, new nonfungible token launches and the secure nature atomic swaps on AtomicDEX.
Komodo integrates multiple blockchain networks
To help increase the token price of the Komodo protocol, the most important development in 2022 was the addition support for 13 different blockchain networks via AtomicDEX.
@AtomicDEX has @0xPolygon, @avalancheavax, @harmonyprotocol and 10 other protocols.#AtomicDEX now provides a new bridging service that supports blockchain scalability efforts in both the @ethereum cash and @Bitcoin Cash ecosystems. pic.twitter.com/9EhTnhmb9C
— Komodo (@KomodoPlatform) January 11, 2022
AtomicDEX is currently one of few decentralized exchanges that offers support for both Ethereum Virtual Machine-compatible networks and networks that share a code with Bitcoin (BTC), like Bitcoin Cash (BCH), Litecoin(LTC), and Dogecoin [DOGE].
#DigiByte shares #Bitcoin’s source code, so it can be integrated in the same systems as those that use BTC. This is a significant infrastructure that is being built. Keep an eye out for decentralized exchanges working towards interoperability. @KomodoPlatform provides a great example.
— LT (Will Never ask for nor give away crypto) (@LTLovesdigi, February 20, 2022
Based on the comments of various parties, there are some other chains that could be integrated with AtomicDEX. These include Digibyte and Cosmos.
Komodo launches nonfungible tokens
The introduction of NFTs into the ecosystem, with the upcoming launch Cyber Komodos, is another reason for increased activity at Komodo.
1. Good morning, world! The #CyberKomodoNFT Collection will be available on @TokelPlatform. This collection is dedicated to @KomodoPlatform, the amazing projects and teams that make up the ecosystem. pic.twitter.com/XMtPda5oIw
— Cyber Komodos (@CyberKomodos) January 25, 2022
NFTs are still a hot topic in the cryptocurrency ecosystem. They are also one the best ways for networks to attract new users and engage with their communities.
Cyber Komodos, a collection consisting of 777 unique Komodos that vary in rarity, will be available on the Tokel NFT platform starting March 15.
Related: Industry players respond Vitalik Buterin’s thoughts on cross-chain ecologies
Cross-chain swaps are secure
The cross-chain swapping capabilities of AtomicDEX are another factor that has attracted attention to Komodo. They operate in person-to-person mode and don’t require custodial care.
After several high-profile cross-chain bridge exploits such as Wormhole or Multichain, there have been concerns about smart contract hacks and exploits that have caused users to be hesitant about locking funds in these protocols.
AtomicDEX trades with atomic swaps. These help to reduce risk vectors and do not require custodians. With the large number of supported networks offered by AtomicDEX, Komodo has been a key focus for crypto traders.
VORTECS(tm), data from Cointelegraph Markets Pro, began to detect a bullish outlook on KMD on February 15, before the recent price rise.
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. the KMD price. Source: Cointelegraph Markets Pro
The chart shows that the VORTECS(tm), Score for KMD rose into the green zone on February 15th and reached a peak of 85 approximately 98 hours later. This was just before the price surged 54% the following day.
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