Solana (SOL) and Cosmos (ATOM) abandon trend of reaching new heights after protocol upgrades

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Bitcoin’s (BTC) sharp correction below $ 45,000 sent shockwaves across the market for a second day and many altcoins are struggling to maintain the gains they’ve racked up since the start of the market. year.

Two exceptions to the current downside are Solana (SOL) and Cosmos (ATOM), both of which have managed to experience minor price surges following recent bullish developments for each project.

Data from TBEN Markets and TradingView shows that SOL and ATOM saw initial price declines at the start of trading hours on February 23, but both were able to rebound quickly and outperform the market as a whole for the day.

Solana receives a boost from DeFi integrations

Solana’s price erupted on February 22 when Raydium, the first Automated Market Maker (AMM) for the Solana blockchain, was launched. The AMM platform enables faster transactions, shared liquidity, and new ways for token holders to earn a return.

Raydium’s exit helps bring the SOL ecosystem closer to a viable competitor for DeFi on Ethereum (ETH), as traders desperately seek ways to escape high transaction costs on the network.

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Evidence of its growing influence can be found in a recent proposal from SushiSwap codenamed “ Bonsai ”, which seeks to integrate the SUSHI ecosystem into Solana as a way to alleviate high fees on the Ethereum network.

Although the proposal is still in its early stages and needs to be approved via a community vote, traders have responded positively to the news, which may have helped SOL’s price rebound and hit a low. new all-time high at $ 15.88.

4 hour SOL / USDT chart. Source: TradingView

If approved, SushiSwap users will be able to manage their yield farms and perform token exchanges on the Solana blockchain. The team also said Bonsai is expected to be live on testnet by the end of Q1 2021.

TBEN Markets Pro’s VORTECS ™ data began to detect a bullish outlook for SOL on February 22, ahead of the price increase.

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The VORTECS ™ Score, exclusive to TBEN, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trade volume, recent price movements and Twitter activity .

TBEN Markets Pro – VORTECS ™ score (green) vs SOL price

As shown in the chart above, the VORTECS ™ score for SOL peaked at 83 on February 22, shortly before the price hit a new all-time high.

Stargate helps take Cosmos higher

The recent bullish outlook for Cosmos is in part due to the recent Stargate update that includes the highly anticipated Inter-Blockchain Communication (IBC) protocol, an interoperability layer for Cosmos blockchains.

The IBC will allow projects such as Kava (KAVA) and Band Protocol (BAND), which were built with the Cosmos Software Development Kit (SDK), to easily interact and link tokens across other blockchains. on the Cosmos network. Eventually, the network is expected to operate with separate protocols such as Binance Smart Chain.

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On February 22, the price of ATOM fell 35% to $ 15.07, but protocol upgrade news and falling bull buying pushed the price down to $ 19.83.

ATOM / USDT 4 hour chart. Source: TradingView

Interoperability is quickly becoming a key feature for blockchain ecosystems that want to survive today’s market landscape, and it looks like the Stargate version has given Cosmos a boost.

The IBC enables projects from across the Cosmos ecosystem to be used in the rapidly evolving DeFi industry, bringing a new level of functionality to projects such as the Kava and Band protocol.

Future integrations with protocols such as Binance Smart Chain will further expand the use of tokens, and ATOM is well positioned for further improvement as blockchain technology becomes more mainstream.

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.