Komodo (KMD) rallies 54% after major push to expand interoperability with AtomicDEX

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Interoperability between separate blockchain networks has turn out to be 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 different method to reaching cross-chain interoperability is Komodo, an open, composable multichain platform that’s residence to the AtomicDEX pockets and non-custodial decentralized change.

Information from Cointelegraph Markets Pro and TradingView exhibits that after hitting a low of $0.446 on Feb. 20, the worth of the platform’s KMD token surged 54% to a every 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 embrace: the current addition of assist for 13 separate blockchain networks with AtomicDEX, contemporary nonfungible token (NFT) launches and the safe nature of atomic swaps on AtomicDEX.

Komodo integrates a number of blockchain networks

Essentially the most important growth for the Komodo protocol in 2022 to assist enhance its token worth has been the addition of support for 13 different blockchain networks on AtomicDEX.

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), corresponding to Bitcoin Money (BCH), Litecoin (LTC) and Dogecoin (DOGE).

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, embrace 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.

NFTs proceed to be one of many hottest trending subjects 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: Industry players respond to Vitalik Buterin’s thoughts 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 doesn’t require custodial providers.

Following a number of high-profile exploits of cross-chain bridges like Wormhole and Multichain, issues associated to good contract exploits and hacks have led to consumer hesitancy relating to locking funds in these protocols.

AtomicDEX performs trades utilizing atomic swaps, which assist cut back danger vectors and don’t require custodians or complicated good contracts which are extra vulnerable to errors. This, mixed with the big selection of supported networks by AtomicDEX, has helped carry added consideration to Komodo as safety has turn out to be a focus for crypto merchants.

VORTECS™ information from Cointelegraph Markets Pro 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 Pro

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 worth elevated 54% over the subsequent day.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, you must conduct your personal analysis when making a choice.