dYdX and Cosmos the perfect pair - is Cosmos set for massive growth?
High through-put is just the beginning of scaling
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dYdX to Scale using Cosmos
Mid last year, dYdX announced they were moving to Cosmos. One of the major reasons for moving to Cosmos was the ability for dYdX to scale following its decentralized standards while also having the ability for higher throughput. dYdX has sought to push for a decentralized approach to running its platform.
What is Cosmos (ATOM)?
Cosmos is a technology that makes it relatively easy to create a standalone blockchain with strong cross-chain capabilities. Cosmos chains are based on the Tendermint proof-of-stake consensus system. Cosmos offers high throughput, decentralization, and customizability. Each Cosmos chain traditionally has its own validators and Layer 1 staking token. So it’s easy to see why a Dex like dYdX would make such a move to Cosmos.
Our Interview with CEO of dYdX
In our interview last year, we spoke to the CEO of dYdX on the move to Cosmos and the major reasons why. Check out the video to see some key insights on why dYdX opted into moving to Cosmos and where it fits into their overall strategy.
https://www.youtube.com/live/yMWUM1M6HnI
Cosmos Ecosystem Growth
The total number of IBC’s or Inter blockchain communication apps have almost doubled since Q4 2021. IBC is an interoperability protocol for communicating arbitrary data between arbitrary state machines.
Source: map of zones
Cosmos Token Growth
Since mid December to the beginning of February of this year, Cosmos (ATOM) has had a nice run up in price. But will the ecosystem growth be enough to keep the token price healthy over the coming weeks. ATOM is a token to keep an eye on long term given the ecosystem growth, but also keeping an eye on the macro situation of the crypto market may prove to be even more important at this time. The settlement between Kraken and the SEC around staking has also sent a ripple effect of FUD throughout the crypto market. But long-term Cosmos could be quite the resilient ecosystem, especially if their ecosystem continues to grow.