The price of Cosmos digital currency has grown by three digits in the past month. Experts believe that the addition of new features to the Cosmos network has increased investor interest in buying this digital currency.
to the Report Coin Telegraph, the price of tokens related to the top-tier protocols on the market has been rising during August, due to the small and imperceptible effect of London Hardfork in solving the problem of high fees and low speed of network transaction approval. It was the Ethereum.
Users during this time were looking for platforms that support smart contracts and be better than Ethereum. It can be said that Cosmos has been one of the biggest beneficiaries of recent users’ search in this regard. Thanks to its Interconnection Protocol (IBC) protocol, the project focuses on network interoperability to become a blockchain Internet.
Market data show that the price of Cosmos rose 180 percent from its $ 8.87 floor on July 20 to $ 24.77 on August 22. As a result, its trading volume increased from an average of $ 250 million per day to $ 1.87 billion.
Last month’s rise in the price of Cosmos had three main reasons, including the introduction of decentralized finance protocols (DeFi), the launch of a sidechain to exchange digital currencies between Cosmos and Ethereum, and the announcement of plans to build Bitcoin representative tokens, something like that. Wrapped Bitcoin is in the Cosmos ecosystem.
Develop Cosmos capabilities in decentralized finance
The decentralized finance industry is one of the biggest developments in China’s blockchain ecosystem over the past few years and could revolutionize the traditional financial industry.
The launch of Emeris, the first user interface of the Cosmos network defa, has been one of the most important factors influencing the price growth of this digital currency, as the introduction of mid-chain exchange capabilities excited members of the Cosmos community and increased demand for the digital currency. .
In the new interface, users can access a number of Difai inter-chain protocols in the Cosmos blockchain and trade digital currencies on networks such as IRISnet, Persistence and Akash Network.
Launching the bridge connecting with Ethereum
The second reason for the increase in the price of Cosmos is the integration of Sifchain with the Cosmos Intermediate Communication Protocol. This partnership has made SAIF China the first decentralized exchange to enable transactions between the Cosmos ecosystem and the Ethereum network.
The best protocols based on smart contracts based on decentralized finance and NFT tokens currently operate in the Ethereum network, and this integration allows users of both ecosystems to easily trade their digital currencies between the two networks.
Addition of bitcoin to the Cosmos network
The release of the Interchain Foundation’s announcement on August 23 is the third reason for the Cosmos price increase. The InterChina Foundation is an organization that provides funding for the development of the Cosmos ecosystem and has funded the Interlay Development Fund to provide Bitcoin representative tokens on the Cosmos network.
The Cosmos team wrote in this regard:
Bitcoin enters Cosmos. Interli is building a communication bridge with an inter-chain communication protocol [کازماس] Is to use it to enable Cosmos-compliant communication chains to access bitcoin without the need for trust. This exciting step will help Cosmos grow the defy sector and improve partnerships between the Blockchain.
Bitcoin is the undisputed leader in the digital currency market, and most of the wealth accumulated in the digital currency ecosystem belongs to Bitcoin, so the ability to work with this digital currency on the Cosmos blockchain could bring new users to the network.
Interli uses Vault and Asset Locking technology, which allows users to securely store their bitcoins and receive interBTC tokens by pledging their assets. Users can work on many defy projects using Interface tokens. This feature is currently available as one of the Polkadot Parachains.
This will enable the use of bitcoin in the Cosmos blockchain and increase network liquidity and efficiency.