After releasing a cross-chain bridge and wrapping Bitcoin, Cosmos (ATOM) is on the rise.

After the network expanded out its DeFi ecosystem and began working on cross-chain bridges for ETH and BTC, the ATOM price soared into the triple digits. The widely anticipated distribution of the London hard fork on the Ethereum (ETH) network has done little to solve the network's high transaction fees and delayed confirmations, therefore momentum for the top layer-one protocols has been on the rise throughout August.

Cosmos (ATOM), a project focused on interoperability that has set out to become the "internet of blockchains" thanks to its Inter-Blockchain Communication (IBC) protocol, has been one of the major beneficiaries of the search for a more inviting smart contract ecosystem.

The price of ATOM rose 180 percent from a low of $8.87 on July 20 to a high of $24.77 on August 22, according to data from Cointelegraph Markets Pro and TradingView, while its 24-hour trading volume increased from $250 million to $1.87 billion.

The release of decentralized financial protocols on the network, the creation of a sidechain that facilitates asset exchange between Cosmos and Ethereum, and the news of plans to integrate Bitcoin (BTC) to the Cosmos ecosystem are three reasons for ATOM's outstanding performance over the past month.

Increasing the capabilities of DeFi

Decentralized finance (DeFi) has been one of the most significant advancements in the blockchain ecosystem in recent years, and it is poised to transform the traditional financial sector.

Because the introduction of cross-chain exchange capabilities delighted members of the Cosmos community and contributed to a surge in demand for the token, the recent unveiling of the first operational user interface for DeFi on Cosmos, known as Emeris, has been one of the greatest movers of ATOM price recently.

Users can trade assets on blockchains including IRISnet (IRIS), Persistence (XPRT), and the Akash Network using the new interface, which allows them to access a number of cross-chain DeFi protocols on the Cosmos network (AKT).

The Ethereum bridge provides up new possibilities.

The integration of Sifchain with the IBC, which enabled the project the first decentralized exchange to permit trading between the Cosmos ecosystem and the Ethereum network, is a second cause for the ATOM surge.

Most of the leading smart-contract protocols for DeFi and NFTs are hosted on Ethereum, and this integration allows users of both ecosystems to effortlessly transfer assets between them.

The Interchain Foundation (IFC), a body that sponsors development grants in the Cosmos ecosystem, said on Aug. 23 that it had granted financing to the Interlay development fund for bringing Bitcoin to the Cosmos network. This is the third reason for the current positive momentum.

Because Bitcoin is the undeniable leader of the crypto market and controls the great majority of the ecosystem's wealth, the ability to function on Cosmos has the potential to attract new users.

Interlay's lock-up and vault technology allows users to secure their Bitcoin and mint fully collateralized interBTC that can be utilized in a variety of DeFi applications, and the feature is now available as a Polkadot parachain.

This integration will allow BTC to be used in the Cosmos DeFi ecosystem, providing the network with increased liquidity and utility.


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