Komodo (KMD) gains 54% after efforts to expand interoperability with AtomicDEX
Komodo (KMD) gains 54% after efforts to expand interoperability with AtomicDEX.
Interoperability between separate blockchain networks has become a hot topic in the crypto market over the past year, but several major hacks — like the $321 million wormhole case — have highlighted the difficulties of secure cross-chain transfers.
One protocol that drew attention in February for its alternative approach to achieving cross-chain interoperability is Komodo, an open, composable, multichain platform that hosts an AtomicDEX wallet and an unsecured decentralized exchange (DEX).
Data from TradingView shows that KMD price rose 54% after hitting a low of $0.446 on February 20 to reach an intraday high of $0.687 on February 22.
KMD/USDT price chart | Source: TradingView
The three reasons behind the increase in KMD price and trading volume are the support of 13 separate blockchain networks with AtomicDEX, the launch of a new NFT and the security of Atomic Swaps on AtomicDEX.
Komodo integrates multiple blockchain networks
The key development for the Komodo protocol in 2022 to drive up the KMD price is the support of 13 different blockchain networks on AtomicDEX.
“AtomicDEX added 0xPolygon, Avalanche, Harmony and 10 more protocols. AtomicDEX now offers a new bridge solution to help support blockchain scalability efforts for both the Ethereum and Bitcoin Cash ecosystems.”
AtomicDEX is one of the few DEXs that currently has a lot of support not only for Ethereum Virtual Machine (EVM) compatible networks but also for Bitcoin (BTC) based networks like Bitcoin Cash (BCH), Litecoin (LTC) and Bitcoin (BTC) offers Dogecoins (DOGE).
“Because DigiByte shares Bitcoin’s open-source code, it can be integrated into the same system that uses BTC. That’s a significant amount of infrastructure being built. Keep an eye out for DEXs moving towards interoperability.”
Several other chains have the potential to be integrated into AtomicDEX in the future based on comments from various parties including Digibyte, Cosmos and Polkadot.
Launching NFT on Komodo
The second reason for the increase in Komodo activity is the introduction of NFT into the ecosystem with the upcoming launch of Cyber Komodos.
“We are launching the Cyber Komodo NFT collection on the Tokel platform. A collection to celebrate the time when the Komodo platform and amazing projects and teams were part of the ecosystem.”
NFTs continue to be one of the hottest topics in the crypto ecosystem, and they’re also one of the best ways for the network to attract new users and generate engagement with their community.
CyberKomodos is a collection of 777 unique Komodos of varying rarity that will launch on March 15th on the Tokel NFT platform.
Secure Cross-Chain Swaps
The third factor drawing more attention to Komodo is AtomicDEX’s cross-chain swapping capabilities, which work person-to-person and do not require custody services.
After a number of well-known exploits of cross-chain bridges like Wormhole and Multichain, concerns about the exploits and hacking of smart contracts have made users reluctant to lock funds in these protocols.
“That’s why AtomicDEX is such a superior bridge. P2P atomic swaps, no collateral, no complex smart contracts and less attack surface. Currently it supports Polygon, BSC, ETH, AVAX, HECO and even non-EVM chains like Bitcoin, Litecoin etc.”
AtomicDEX executes transactions using Atomic Swaps, which reduces risk vectors and does not require custodians or complex smart contracts that are more error-prone. This, combined with the wide range of networks supported by AtomicDEX, has helped further attract Komodo’s attention as security has become a key concern for crypto traders.
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