Home Bitcoin Cosmos (ATOM) rebounded after launching a cross-chain bridge and wrapping Bitcoin

Cosmos (ATOM) rebounded after launching a cross-chain bridge and wrapping Bitcoin

Aug 28, 2021 0 Comments


With the launch of the highly anticipated London hard fork on Ethereum, the momentum of the top-level first-tier agreement has been on the rise throughout AugustEthereum) The network has hardly solved the network’s high transaction costs and delayed confirmation issues.

One of the biggest beneficiaries in the search for a more popular smart contract environment is Cosmos (ATOM), a project focused on interoperability, and due to its inter-blockchain communication (IBC), the project has begun to become a “blockchain Chain Internet” protocol.

Data from Cointelegraph Markets Pro with Transaction view It shows that the price of ATOM rose from a low of US$8.87 on July 20 to a high of US$24.77 on August 22, an increase of 180%, and its 24-hour trading volume soared from an average of US$250 million to US$1.87 billion.

ATOM/USDT 4-hour chart. source: Transaction view

Three reasons for ATOM’s strong performance in the past month include the release of a decentralized financial protocol on the network, the launch of a side chain that supports the exchange of assets between Cosmos and Ethereum, and the announcement of plans to introduce Bitcoin (Bitcoin) To the Cosmos ecosystem.

Extend DeFi function

Decentralized finance (DeFi) is one of the biggest developments in the blockchain ecosystem in the past few years and will completely change the traditional financial sector.

Recently, the first functional user interface for DeFi, Emeris, was launched on Cosmos. It has been one of the biggest promoters of ATOM prices recently, because the introduction of cross-chain exchange functions inspired members of the Cosmos community and led to a surge in orders. The demand for cards.

Through the new interface, users can access multiple cross-chain DeFi protocols on the Cosmos network and trade assets on blockchains such as IRISnet (IRIS), Persistence (XPRT) and Akash Network (AKT).

The Ethereum Bridge opens up opportunities

The second reason for the ATOM rally is the integration of Sifchain and IBC, which makes the project the first decentralized exchange that supports transactions between the Cosmos ecosystem and the Ethereum network.

Ethereum currently hosts most of the top smart contract protocols of DeFi and NFT. This integration allows users of the two ecosystems to easily trade assets between the two networks.

Wrapping Bitcoin to Cosmos

The third reason for the current bullish momentum comes from the August 23 announcement that the Interchain Foundation (IFC), an organization that provides funding for the development of the Cosmos ecosystem, has provided funds to the Interlay Development Fund to introduce Bitcoin into the Cosmos network.

Bitcoin is the undeniable leader in the crypto market. It has most of the wealth accumulated in the ecosystem, so the ability to run on Cosmos may bring new users to the network.

Interlay uses lock and vault technology to allow users to protect their Bitcoin and mint fully mortgaged interBTC, which can be used in many DeFi projects, and this feature has been provided as a Polkadot parachain.

This integration will enable BTC to be used in the Cosmos DeFi ecosystem and will bring deep liquidity and increased utility to the network.

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