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

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Interoperability between separate blockchain networks has develop into a serious theme within the cryptocurrency market over the previous 12 months, 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 because of its various strategy to reaching cross-chain interoperability is Komodo, an open, composable multichain platform that’s dwelling to the AtomicDEX pockets and non-custodial decentralized trade.

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Knowledge from Cointelegraph Markets Pro 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 help 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

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

AtomicDEX is without doubt one of the few decentralized exchanges to at present supply a variety of help for not simply Ethereum Digital Machine-compatible networks but in addition networks that share a supply code with Bitcoin (BTC), reminiscent of Bitcoin Money (BCH), Litecoin (LTC) and Dogecoin (DOGE).

A number of the different chains which have the potential to be built-in with AtomicDEX sooner or later, based mostly on feedback from numerous events, embody Digibyte, Cosmos and Polkadot.

Nonfungible tokens launch on Komodo

A second motive 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 the most effective methods for a community to draw new customers and generate engagement with their communities.

Cyber Komodos is a group of 777 distinctive Komodos with a various rarity that might 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, considerations associated to good contract exploits and hacks have led to person hesitancy on the subject of locking funds in these protocols.

AtomicDEX performs trades utilizing atomic swaps, which assist scale back threat vectors and don’t require custodians or advanced good contracts which are extra susceptible to errors. This, mixed with the big selection of supported networks by AtomicDEX, has helped deliver added consideration to Komodo as safety has develop into a focus for crypto merchants.

VORTECS™ knowledge 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 value elevated 54% over the following day.

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