Bitcoin

Interop and DEX updates show that TomoChain (TOMO) wants DeFi dominance

The cryptocurrency market started the year at full throttle and with all of the bullish breakouts it can be difficult to see which projects are simply being driven by the macro trend and which are making a profit due to solid technological developments and improved fundamentals. .

As Bitcoin price fell more than $ 11,000 between January 10 and January 11. Several altcoins suffered double-digit losses. However, some DeFi and Layer 2 oriented coins bucked the trend and quickly rebounded as the price of BTC consolidated.

For example, At TomoChain (TOMO), the price doubled from $ 0.65 on Jan 2 to $ 1.29 on Jan 12. Solid performance during one of the largest bitcoin sell-offs in cryptocurrency history, TOMO deserves a closer look at what fundamentals support such a strong move.

TOMO / USDT 4 hour chart. Source: TradingView

Important announcement of interoperability builds confidence

Interop and DEX updates show that TomoChain (TOMO) wants DeFi dominance
Interop and DEX updates show that TomoChain (TOMO) wants DeFi dominance

With the rise of the DeFi sector over the past year, most of which are in the Ethereum network, Interoperability with the main altcoin has become a necessary feature for any project that wants to achieve traction and a large user base.

The need for scalable Etheruem alternatives with low commissions seems to be one of the factors driving TOMO’s price up.

On January 7th, the team released an update for the TomoIssuer and TomoBridge platforms. With the update, every user can issue a packed ERC-20 token and list it on TomoBridge as a TRC-21 token.

As commissions rise again on the Ethereum network, developers and traders can use TomoBridge to trade ERC-20 tokens more efficiently. than they could on the Ethereum network.

Recently, TomoChain has also released the Zorro version which includes an update of its Ethereum Virtual Machine (EVM) and the current version of Solidity. With this update, developers can “Easily implement code from other EVM chains into TomoChain with minimal customization.”

The introduction of Zorro, TomoIssuer and TomoBridge together has the potential to capture some of the liquidity and transactions of the Ethereum-dominated DeFi space. At the same time, they help reduce the congestion and high fees that are currently affecting the Etheruem network.

Some challenges remain

As with most cryptocurrency projects Gaining an active user base is a challenge for TomoChain.

The first decentralized exchange that is supplied with power and secured directly via the TomoChain network. TomoDEX, was released by the team on May 14, but struggles to gain traction.

To date, activity on TomoDEX remains weak with just $ 13,117 trading in the past 24 hours. It remains to be seen whether the launch of Zorro and TomoIssuer will provide a greater incentive for ERC-20 token holders to begin migrating to the TomoChain network.

Despite the low level of participation in his network TOMO developers are further developing the protocol and refining the code. Proof of the legitimacy of the project are the numerous partnerships that will continue to be established with the platform.

The latest update, with which the ERC-20 could be packaged together with the update of the main network of Zorro, had a positive effect on the perception of the project in the public. Data from TheTie shows that TOMO’s 30-day average sentiment score is now at its second highest level, and the surge coincided with the recent price surge.

TOMO price compared to the average 30-day sentiment value. Source: TheTIE

On November 28, 2020 the government of the Vietnamese Ministry of Education and Training (MOET) announced a partnership with TOMO “Designing, developing and using a National Qualifications File (NQA) system that guarantees diplomas and certificates recognized in the TomoChain Public Blockchain.”

This was an important event for the platform because it is one of the largest public blockchain adoptions by a major government.

What’s even more encouraging is that the Vietnamese recently identified blockchain technology as a top priority and have already established TomoChain as one of their top options. A growing number of investors could turn their attention to TOMO.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move is associated with risks. You should do your own research when making a decision.

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