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Cosmos (ATOM) Experiences Surge Ahead of Upcoming Platform Changes
- Cosmos (ATOM) experienced a 41% price increase in the last month, sustained by more than just the overall market bull-run.
- Circle CEO Jeremy Allaire announced the launch of the Cross-Chain Transfer Protocol (CCTP) on Cosmos’ Noble chain.
- In a vote, the Cosmos community decided to lower Atom’s inflation rate from around 14% to a maximum of 10%.
ATOM Price Surge
Cosmos (ATOM) has seen a 41% surge in the past month amid the overall bull-run, but there is more to it than just general euphoria. As per CoinMarketCap ATOM is currently trading for US$ 9.96 (AU$ 15.13)
Cosmos, known as the “Internet of Blockchains,” is a major decentralised network enabling independent blockchains to interact while maintaining their sovereignty.
Cross-Chain Transfer Protocol (CCTP)
Jeremy Allaire, Co-founder & CEO of Circle revealed that Cross-Chain Transfer Protocol (CCTP) is going live on Noble, an asset-issuance chain on Cosmos, and its integration with DyDx on their app-chain on Cosmos is a major development in the blockchain and decentralised finance (DeFi) space for several reasons.
DyDx is a major player in the DeFi world, and its growing importance is a reflection of the market’s shift towards a blend of centralised (CEX) and decentralised exchange (DEX) models. This shift emphasises improved risk management and transparency in financial transactions.
CCTP will include the ability to enable direct movement of USDC across multiple blockchains. It also involves collaboration across various blockchain networks, bridges, wallets, messaging layers, and aggregators. It’s seen as a comprehensive effort that showcases the growing interconnectivity and sophistication in the blockchain ecosystem.
CCTP will allow anyone on Ethereum, Avalanche, Arbitrum, Base, Optimism and Cosmos (and soon Solana) to directly move USDC natively into DyDx without bridged or wrapped USDC. Better, faster, cheaper, safer.
Jeremy Allaire According to Allaire, this advancement highlights the steady pace of technical and user experience innovations in blockchain networks, often overshadowed by more sensationalist news. It sets a solid foundation for wider adoption and scalability of blockchain technology in the years 2024 and 2025, suggesting a promising future for the industry.
Community Votes
The Cosmos community recently reached a pivotal decision regarding the inflation rate of Atom. In what became the highest-turnout vote in the community’s history, the Cosmos Hub community agreed to reduce the inflation rate of Atom from approximately 14% to a maximum of 10%. This reduction in inflation also brings down the annualised staking yield from around 19% to about 13.4%.
This decision signifies a major shift in the economic and governance dynamics of the Cosmos Hub, indicating a balance between network security needs and the economic interests of its community.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
