3 reasons why Cosmos (ATOM) price is near a new all-time high

Blockchain web interoperability is shaping up to beryllium 1 of the main themes for the cryptocurrency ecosystem successful 2022. New users are continuing to onboard into the increasing satellite of crypto portion some caller and established projects hunt for the concatenation that volition champion service the needs of their protocol and community. 

One task that has 2022 disconnected to a bullish start, acknowledgment to its absorption connected facilitating the connection betwixt abstracted networks, is Cosmos (ATOM). This task bills itself arsenic “the net of blockchains” and seeks to facilitate the improvement of an interconnected decentralized economy.

Data from Cointelegraph Markets Pro and TradingView shows that since hitting a debased of $25.06 connected Dec. 30, the terms of ATOM has rallied 75% to deed a regular precocious astatine $43.98 connected Jan. 4 arsenic its 24-hour trading measurement spiked to $2.54 billion.

ATOM/USDT 1-day chart. Source: TradingView

Three reasons for the surging terms of ATOM are the motorboat of a cross-chain bridge, which makes the protocol Ethereum Virtual Machine (EVM) compatible and an upcoming Theta upgrade, which volition rapidly grow the ecosystem of connected chains and applications.

Cosmos nears EVM compatibility

The astir important improvement that has provided a boost to ATOM is the rollout of Evmos, an EVM-compatible protocol that volition let assets and projects that run connected the Ethereum (ETH) web to migrate implicit to the Cosmos ecosystem.

Up to this point, determination had not been a mode for Ethereum-based projects to interact with the Cosmos ecosystem. This importantly constricted the fig of projects and tokens that could interact with decentralized concern (DeFi) and nonfungible token (NFT) projects successful the Cosmos ecosystem.

Gravity Bridge, which launched connected Dec. 15, is different task dedicated to facilitating the bridging of assets betwixt Ethereum and Cosmos and it presently operates arsenic a standalone chain. Plans to migrate to the Cosmos Hub successful aboriginal 2022 are presently underway.

Preparing for the Theta upgrade

A 2nd improvement that has enactment upwind successful the sails of Cosmos is the protocol's upcoming Theta upgrade, which is scheduled for March 31.

Some of the caller features included successful the upgrade are the summation of meta-transactions wherever transactions tin beryllium submitted by abstracted accounts that person tips and the instauration of inter-chain accounts, which let users to negociate accounts crossed aggregate blockchains. Another diagnostic is liquid staking, a strategy wherever users utilize the worth of staked assets successful different parts of the Cosmos ecosystem.

The Theta upgrade besides includes NFT modules, which alteration the elemental absorption of NFT identifiers, their owners and associated data.

Related: ROSE gains 54% successful a week arsenic Oasis Network ecosystem expands

Expanding ecosystems are typically bullish

A 3rd crushed for the bullish momentum of ATOM is the ecosystem's enlargement to 28 live, interconnected chains that full much than $68 cardinal successful full value.

Cosmos is the lone cross-chain ecosystem successful the satellite that uses an interoperability standard.#CosmosFactshttps://t.co/HwBEUuchyP pic.twitter.com/9b9YRyLfVS

Some of the much established chains that person joined the Cosmos ecosystem are the Binance Smart Chain, Terra (LUNA) and Crypto.com (CRO), portion the biggest projects utilizing Cosmos' bundle improvement kit (SDK) see Osmosis (OSMO), Secret (SCRT), Oasis Network (ROSE) and Kava (KAVA).

As the span protocols linking Cosmos with different EVM-compatible networks are established, the fig of chains connected to the Cosmos Hub is apt to increase. This volition bring an summation successful the full worth of the ecosystem on with it.

VORTECS™ information from Cointelegraph Markets Pro began to observe a bullish outlook for ATOM connected Dec. 29, anterior to the caller terms rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic examination of humanities and existent marketplace conditions derived from a operation of information points including marketplace sentiment, trading volume, caller terms movements and Twitter activity.

VORTECS™ Score (green) vs. ATOM price. Source: Cointelegraph Markets Pro

As seen successful the illustration above, the VORTECS™ Score for ATOM began to prime up connected Dec. 28 and climbed to a precocious of 81 conscionable arsenic the terms began to summation 67% implicit the adjacent six days.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.