The power of connections – Cosmos (ATOM) is improving its interoperability and diving deeper into DeFi than ever before. News of new bridges being built between Cosmos and other blockchains, allowing its users access to a variety of DeFi protocols, is causing ATOM’s share price to jump 180% in the space of a month.
ATOM’s atomic explosion: Cosmos’ DeFi
How to explain ATOM’s strong performance, with its price rising from $8.87 on July 20, 2021 to $24.77 on August 22, 2021, according to data from Cointelegraph Markets Pro and TradingView? This surge in ATOM’s price would be largely due to 3 factors contributing to the development of the Cosmos ecosystem.
The first factor is the recent launch of Emeris, the first functional user interface for DeFi on Cosmos. Emeris allows users to access cross-chain DeFi protocols on Cosmos and exchange assets on blockchains such as IRISnet (IRIS), Persistence (XPRT) and the Akash network (AKT).
ATOM has also benefited from the integration of the Sifchain DEX built with the Cosmos SDK, with the Inter blockchain communication (IBC). The latter allows the different Cosmos blockchains to communicate with each other. Sifchain thus becomes the first DEX allowing exchanges between the Cosmos ecosystem and Ethereum (ETH).
Feeding ATOM with wrapped Bitcoin on Cosmos
The third factor behind ATOM’s bullish rally is the August 23, 2021 announcement stating that the Interchain Foundation (IFC) has granted funding to the Interlay Development Fund. The IFC is an organization that funds development grants in the Cosmos ecosystem
This financial support is aimed at bringing Bitcoin (BTC ) to Cosmos. Interlay uses lock-up and vault technology that allows users to secure their bitcoins and mine 100% guaranteed interBTC, which can be used in many DeFi projects. This functionality is available as a Polkadot (DOT) parachain.
Cosmos wants to embody the internet of blockchains, so interoperability is strategic for the network. The recent news augmentant its capacity in DeFi through connections with Ethereum and other DeFi protocols, but also importing Bitcoin onto Cosmos, have caused the price of ATOM, the network’s native cryptocurrency, to explode. To go further, this interview with the architects of Cosmos provides more insight into the project.
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