Bitcoin (BTC) sharp correction below $ 45,000 has shocked the entire market for a second day, and many altcoins are struggling to hold on to gains made since the start of the year.
Two exceptions to the current downturn are Solana (SOL) and Cosmos (ATOM), both of which saw minor price breakouts for each project following recent bullish developments.
Data from Cointelegraph Markets and TradingView show that SOL and ATOM saw initial price declines in the early trading hours of February 23, but both rallied quickly and outperformed the broader market of the day.
Solana gets a boost from DeFi integrations
Solana price erupted on February 22nd when Raydium, the first automated market maker (AMM) for the Solana blockchain, was launched. The AMM platform enables token holders faster trades, shared liquidity and new ways to generate a return.
Raydium’s release helps bring the SOL ecosystem one step closer to a viable competitor for DeFi on Ethereum (ETH) as traders desperately seek ways to avoid high transaction costs on the network.
Evidence of its growing influence is a recent proposal by SushiSwap, code-named “Bonsai”, to integrate the SUSHI ecosystem into Solana to reduce the high fees on the Ethereum network.
Although the proposal is still in its early stages and needs to be approved through a community vote, traders responded positively to the news. This may have helped the SOL price bounce back, reaching a new all-time high at $ 15.88.
If approved, SushiSwap users will be able to manage their income farms and token swaps for the Solana blockchain. The team also said that Bonsai is expected to be live on testnet by the end of the first quarter of 2021.
VORTECS ™ data from Cointelegraph Markets Pro began to see an optimistic outlook for SOL on February 22nd, ahead of the price hike.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the graph above, VORTECS ™ for SOL hit a high of 83 on February 22nd, just before the price rose to a new all-time high.
Stargate helps push cosmos higher
The recent bullish outlook for Cosmos can be attributed in part to the recent Stargate update, which includes the much-anticipated Inter-Blockchain Communication (IBC) protocol, an interoperability layer for Cosmos blockchains.
With the IBC, projects like Kava (KAVA) and Band Protocol (BAND), which were created with the Cosmos Software Development Kit (SDK), can easily collaborate with and bridge other blockchains in the Cosmos network. Finally, the network is expected to work with separate protocols like Binance Smart Chain.
On February 22nd, the ATOM price fell 35% to $ 15.07, but the news of the protocol upgrade and the bulls buying dip pushed the price back to $ 19.83.
Interoperability is fast becoming a key trait for blockchain ecosystems looking to survive the current market landscape, and it seems that the Stargate version has given Cosmos quite a boost.
With the IBC, projects from the entire Cosmos ecosystem can be deployed in the rapidly developing DeFi sector, giving projects such as the Kava and Band protocols a new level of functionality.
Future integrations with protocols like Binance Smart Chain will continue to expand token usage, and ATOM is well positioned to take further advantage as blockchain technology becomes increasingly mainstream.
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