The cryptocurrency market has started the year strong and with all the bullish breakouts happening, it can be difficult to discern which projects are simply driven by the macro trend and which are making gains based on solid technological developments. and improving fundamentals.
As the price of Bitcoin fell more than $ 11,000 between January 10 and January 11, a number of altcoins suffered double-digit losses, but a few DeFi and Layer 2-oriented coins held up to the trend. and recovered quickly as the BTC price consolidated.
For example, TomoChain (TOMO) saw its price double from $ 0.65 on January 2 to $ 1.29 on January 12. With such a performance during one of the biggest Bitcoin sells in crypto history, TOMO deserves a closer look to see what the fundamentals support such a move.
Major interoperability announcement boosts sentiment
With the rise of the DeFi industry over the past year, a majority of which runs on the Ethereum network, interoperability with the top altcoin has become a necessary feature for any project looking to gain traction and a broad base. users.
The need for scalable, low-cost Etheruem alternatives seems to be one of the factors driving the TOMO price up.
On January 7, the team released an update for the TomoIssuer and TomoBridge platforms. The upgrade allows any user to issue an encapsulated ERC-20 token and list it on TomoBridge as a TRC-21 token.
With fees on the Ethereum network rising again, developers and traders can choose to use TomoBridge to trade ERC-20 tokens more efficiently than they could on the Ethereum network.
Recently, TomoChain also unveiled the Zorro version which contains an upgrade to its Ethereum Virtual Machine (EVM) and the current version of Solidity. With this upgrade, developers can “easily deploy code from other EVM chains to TomoChain with minimal customization.”
Together, the version of Zorro, TomoIssuer and TomoBridge have the potential to capture some of the liquidity and transactions of the Ethereum-dominated DeFi space while helping to reduce the congestion and high fees that currently plague the Etheruem network.
Some challenges remain
As is the case with most crypto projects, attracting an active user base is a challenge TomoChain faces.
The first decentralized exchange powered and secured directly through the TomoChain Masternode network, TomoDEX, was launched by the team in May. 14 but struggled to gain ground.
To date, activity on TomoDEX is still lackluster with only $ 13,117 in volume traded in the last 24 hours. It remains to be seen whether the Zorro and TomoIssuer version will provide more incentive for ERC-20 token holders to start migrating to the TomoChain network.
Despite low engagement on its network, TOMO developers continue to move forward by upgrading the protocol and refining the code. The proof of the project’s legitimacy can be found in the many partnerships that continue to be established with the platform.
The recent update to enable ERC-20 wrapping with the Zorro mainnet upgrade had a positive effect on the public perception of the project. Data from TheTie shows TOMO’s 30-day average sentiment score is now at its second-highest on record and the increase coincided with the recent price spike.
On November 28, 2020, the government of Vietnam’s Ministry of Education and Training (MOET) announced a partnership with TOMO “to design, develop and operate a National Qualifications Archive (NQA) system that will guarantee qualifications and certificates recognized on the TomoChain Public. Blockchain. “
This was a major development for the platform as it was one of the largest adoptions of a public blockchain by a large government to date.
Even more encouragingly, the Vietnamese have recently identified blockchain technology as one of the top priorities and with TomoChain already established as one of their top choices, it is possible that a growing number of investors will turn to TOMO.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move comes with risk, you should do your own research when making a decision.