The momentum for top-layer-one protocols picked up in August as the highly anticipated introduction of the London hard fork on the Ethereum (ETH) network did little to fix the network’s high transaction fees and delayed confirmations.
One of the biggest beneficiaries of the search for a more welcoming environment for smart contracts was Cosmos (ATOM), an interoperability-oriented project that aims to become the “Internet of Blockchains” thanks to its inter-blockchain communications (IBC). Protocol.
Data from Cointelegraph Markets Pro and TradingView show that the price of ATOM rose 180% from a low of $ 8.87 on July 20 to a high of $ 24.77 on August 22, while the 24-hour Trading volume increased from an average of $ 250 million to $ 1.87 billion.
Three reasons for ATOM’s strong performance last month are the release of decentralized financial protocols on the network, the introduction of a sidechain that enables the exchange of assets between Cosmos and Ethereum, and the announcement of plans to bring Bitcoin (BTC) to market the cosmos ecosystem.
Extension of the DeFi functions
Decentralized Finance (DeFi) has been one of the biggest developments to emerge from the blockchain ecosystem in recent years and will revolutionize the traditional financial sector.
The recent introduction of the first working user interface for DeFi on Cosmos, known as Emeris, has been one of the biggest drivers of the ATOM award lately as the introduction of cross-chain exchanges made members of the Cosmos community enthusiastic and spurred it on asked for the token.
⚛️ ✨Emeris Beta, the first interface for #GravityDEX, is live NOW
The cross-chain portal @emerisHQ has just started and is making #DeFI a reality in Cosmos!
Experience the power of Cross-Chain DeFi today
– Cosmos – Internet of Blockchains ⚛️ (@cosmos) August 18, 2021
The new interface allows users to access a number of cross-chain DeFi protocols on the Cosmos network and trade assets on blockchains such as IRISnet (IRIS), Persistence (XPRT) and the Akash Network (AKT).
Ethereum Bridge opens up opportunities
A second reason for the ATOM rally is the integration of Sifchain into the IBC, which made the project the first decentralized exchange to enable trading between the Cosmos ecosystem and the Ethereum network.
Another shining star joins us:
Welcome to the #IBCgang, @sifchain!
The value that Sifchain brings to the cosmos ecosystem is undeniable, and we look forward to building an exciting future between the chains together! $ ATOM $ ROWAN $ IRIS $ AKT $ CRO $ OSMO $ ION $ DVPN $ XPRT $ RAIN $ IOV https: // t.co/gP8Ek3buRE
– Cosmos – Internet of Blockchains ⚛️ (@cosmos) August 27, 2021
Ethereum currently hosts most of the major smart contract protocols for DeFi and NFTs, and this integration allows users of both ecosystems to easily trade assets between the two networks.
Packaged Bitcoin comes into the cosmos
A third reason for the current upward momentum stems from an August 23 announcement that the Interchain Foundation (IFC), an organization that finances development grants in the Cosmos ecosystem, has granted funding to the Interlay Development Fund to bring Bitcoin into the Cosmos network bring to.
Bitcoin #BTC comes into the #cosm! @inter_btc is building a #IBC bridge to enable every IBC-compatible chain to access trustworthy bitcoins. This exciting move will help Cosmos grow the #Defi sector and improve collaboration between blockchains.
Read more: https://t.co/wonb7l0q8W pic.twitter.com/REDoB2Pb4n
– Cosmos – Internet of Blockchains ⚛️ (@cosmos) August 23, 2021
Bitcoin is the undeniable leader in the crypto market and holds much of the ecosystem’s accumulated wealth, so the ability to work on Cosmos has the potential to bring new users to the network.
Interlay uses lock-up and vault technology that allows users to secure their Bitcoin and Mint fully secured InterBTC, which can be used in many DeFi projects, and the feature is already available as Polkadot Parachain.
This integration will allow BTC to be used in the Cosmos DeFi ecosystem and add high liquidity and value to the network.
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