The price of KMD increased after the project announced plans to launch an NFT collection and added support for 13 blockchain networks.
Interoperability between different blockchain networks has emerged as a major theme in the cryptocurrency market over the last year, but several major exploits, such as the $321 million Wormhole exploit, have highlighted the difficulties in achieving secure cross-chain transfers.
Komodo, an open, composable multi-chain platform that is home to the AtomicDEX wallet and non-custodial decentralized exchange, has gained traction in February due to its novel approach to achieving cross-chain interoperability.
According to data from various analysts, the price of the platform’s KMD token increased 54 percent to a daily high of $0.687 on Feb. 22 after hitting a low of $0.446 on Feb. 20.
The recent addition of support for 13 different blockchain networks with AtomicDEX, new nonfungible token (NFT) launches, and the secure nature of atomic swaps on AtomicDEX are three reasons for the spike in KMD’s price and trading volume.
Komodo integrates a number of blockchain networks
The addition of support for 13 different blockchain networks on AtomicDEX has been the most significant development for the Komodo protocol in 2022 to help boost its token price.
🥁🚨@AtomicDEX adds @0xPolygon , @avalancheavax , @harmonyprotocol & 10 more protocols🚨🥁#AtomicDEX now offers a new bridging solution that helps support blockchain scalability efforts for both the @ethereum and @Bitcoin cash ecosystems.🎉 pic.twitter.com/9EhTnhmb9C
— 🦎 Komodo (@KomodoPlatform) January 11, 2022
AtomicDEX is one of the few decentralised exchanges that currently supports not only Ethereum Virtual Machine-compatible networks, but also networks that share a source code with Bitcoin (BTC), including Bitcoin Cash (BCH), Litecoin (LTC), and Dogecoin (DOGE).
Because #DigiByte shares the source code of #Bitcoin it can be integrated into the same systems that utilize BTC. That is significant infrastructure being built. Keep your eye on decentralized exchanges that are working towards interoperability. @KomodoPlatform is a good example.
— LT (Will never ask for or give away crypto) (@LTLovesdigi) February 20, 2022
Based on comments from various parties, some of the other chains that have the potential to be integrated with AtomicDEX in the future include Digibyte, Cosmos, and Polkadot.
Komodo introduces nonfungible tokens
The introduction of NFTs to the ecosystem with the upcoming launch of Cyber Komodos is a second reason for the increase in activity for Komodo.
1. Hello world! We're announcing the #CyberKomodo NFT Collection launching on @TokelPlatform. A collection to commemorate @KomodoPlatform and the great projects and teams that form part of the ecosystem. pic.twitter.com/XMtPda5oIw
— Cyber Komodos 🦎 (@CyberKomodos) January 25, 2022
NFTs remain one of the most hotly debated topics in the cryptocurrency ecosystem, and they are also one of the most effective ways for a network to attract new users and generate engagement with their communities.
Cyber Komodos is a collection of 777 different Komodos with varying rarities that will be available on the Tokel NFT platform on March 15.
Cross-chain swaps that are secure
A third factor driving interest in Komodo is AtomicDEX’s cross-chain swapping capability, which operates on a person-to-person basis and does not require custodial services.
Concerns about smart contract exploits and hacks have led to user hesitancy when it comes to locking funds in these protocols, following several high-profile exploits of cross-chain bridges such as Wormhole and Multichain.
This is why @AtomicDEX is a superior bridge. P2P atomic swaps, no custodians, 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.
— PTYX (@ptyx11) January 20, 2022
AtomicDEX executes trades using atomic swaps, which reduce risk vectors and do not require custodians or complex smart contracts, which are more prone to errors. This, along with AtomicDEX’s wide range of supported networks, has helped bring additional attention to Komodo as security has become a focal point for crypto traders.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.