Interoperability between separate blockchain networks has change into a serious theme within the cryptocurrency market over the previous yr, however a number of main exploits — such because the $321 million Wormhole exploit — have highlighted the difficulties in reaching cross-chain transfers in a safe method.
One protocol that has been gaining traction in February due to its various strategy to reaching cross-chain interoperability is Komodo, an open, composable multichain platform that’s house to the AtomicDEX pockets and non-custodial decentralized trade.
Information from Cointelegraph Markets Professional and TradingView exhibits that after hitting a low of $0.446 on Feb 20, the value of the platform’s KMD token surged 54% to a each day excessive of $0.687 on Feb 22.
KMD/USDT 4 hour chart. Supply: TradingView
Three causes for the spike in KMD’s worth and buying and selling quantity embody: the current addition of assist for 13 separate blockchain networks with AtomicDEX, recent nonfungible token (NFT) launches and the safe nature of atomic swaps on AtomicDEX.
Komodo integrates a number of blockchain networks
Probably the most vital growth for the Komodo protocol in 2022 to assist enhance its token worth has been the addition of assist for 13 completely different blockchain networks on AtomicDEX.
@AtomicDEX provides @0xPolygon , @avalancheavax , @harmonyprotocol & 10 extra protocols#AtomicDEX now presents a brand new bridging answer that helps assist blockchain scalability efforts for each the @ethereum and @Bitcoin money ecosystems. pic.twitter.com/9EhTnhmb9C
— Komodo (@KomodoPlatform) January 11, 2022
AtomicDEX is among the few decentralized exchanges to presently supply a variety of assist for not simply Ethereum Digital Machine-compatible networks but in addition networks that share a supply code with Bitcoin (BTC), resembling Bitcoin Money (BCH), Litecoin (LTC ) and Dogecoin (DOGE).
As a result of #DigiByte shares the supply code of #Bitcoin it may be built-in into the identical methods that make the most of BTC. That’s vital infrastructure being constructed. Maintain your eye on decentralized exchanges which might be working in direction of interoperability. @KomodoPlatform is an effective instance.
— LT (Won’t ever ask for or give away crypto) (@LTLovesdigi) February 20, 2022
A few of the different chains which have the potential to be built-in with AtomicDEX sooner or later, primarily based on feedback from varied events, embody Digibyte, Cosmos and Polkadot.
Nonfungible tokens launch on Komodo
A second purpose for the rise in exercise for Komodo has been the introduction of NFTs to the ecosystem with the upcoming launch of Cyber Komodos.
1. Hey world! We’re saying the #CyberKomodo NFT Assortment launching on @TokelPlatform. A group to commemorate @KomodoPlatform and the good initiatives and groups that type a part of the ecosystem. pic.twitter.com/XMtPda5oIw
— Cyber Komodos (@CyberKomodos) January 25, 2022
NFTs proceed to be one of many hottest trending matters within the cryptocurrency ecosystem, and they’re additionally among the best methods for a community to draw new customers and generate engagement with their communities.
Cyber Komodos is a set of 777 distinctive Komodos with a various rarity that will probably be launched on the Tokel NFT platform on March 15.
Associated: Business gamers reply to Vitalik Buterin’s ideas on cross-chain ecosystems
Safe cross-chain swaps
A 3rd issue bringing added consideration to Komodo is the cross-chain swapping functionality of AtomicDEX, which operates in a person-to-person method and does not require custodial companies.
Following a number of high-profile exploits of cross-chain bridges like Wormhole and Multichain, considerations associated to sensible contract exploits and hacks have led to person hesitancy relating to locking funds in these protocols.
AtomicDEX performs trades utilizing atomic swaps, which assist cut back danger vectors and do not require custodians or advanced sensible contracts which might be extra vulnerable to errors. This, mixed with the wide selection of supported networks by AtomicDEX, has helped deliver added consideration to Komodo as safety has change into a focus for crypto merchants.
VORTECS™ knowledge from Cointelegraph Markets Professional started to detect a bullish outlook for KMD on Feb. 15, previous to the current worth rise.
The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mixture of information factors together with market sentiment, buying and selling quantity, current worth actions and Twitter exercise.
VORTECS™ Rating (inexperienced) vs. KMD worth. Supply: Cointelegraph Markets Professional
As seen within the chart above, the VORTECS™ Rating for KMD climbed into the inexperienced zone on Feb. 15 and hit a excessive of 85 round 98 hours earlier than the value elevated 54% over the subsequent day.
The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes danger, you must conduct your individual analysis when making a call.
