Protocols in the Cosmos ecosystem have seen significant growth in 2022 due to increased focus on blockchain interoperability and compatibility with the Ethereum network.
One protocol that has gained momentum since mid-March is Kava, a project developing a co-chain architecture for the Cosmos and Ethereum networks.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Kava’s native token KAVA is up 72.3% after hitting a low of $2.92 on March 13 to hit a daily high of $5 on April 8 to reach $.03.
Three reasons for KAVA’s price surge and momentum are the beta launch of the Ethereum co-chain, the launch of a $750 million developer incentive program, and a series of partnerships and protocol launches that reflect the size of the Kava ecosystem have expanded.
Ethereum co-chain beta launch
One of the most anticipated developments from the kava ecosystem was the successful completion of the alpha phase of the Ethereum co-chain launch.
Ethereum Co-Chain Alpha was AMAZING!
Beta is LIVE and already a powerhouse.
— Kava Network (@kava_platform) April 7, 2022
The Ethereum co-chain enables support for Ethereum Virtual Machine (EVM) smart contracts, while the Cosmos co-chain enables support for the Tendermint Consensus Engine and the Inter Blockchain Communication Protocol (IBC). A translator module connects the co-chains and enables seamless interoperability between the networks.
The mainnet launch of the Ethereum co-chain is expected to take place on May 10th.
Kava Launches $750M Developer Incentive Program
A second reason for KAVA’s growing strength was the March 3 launch of Kava Rise, a $750 million developer incentive program designed to attract developers from decentralized finance (DeFi), gaming and non-gaming fungible projects to join the kava community.
Kava Rise is an on-chain incentive mechanism that distributes 62.5% of all block rewards to developers building on Kava’s Ethereum and Cosmos co-chains as part of the protocol’s effort to become a builder-owned network. The remaining 37.5% of block rewards are distributed to stakers.
The incentive program is expected to go live with the Kava 10 upgrade, which will also include the launch of the Cosmos and Ethereum co-chains on the Kava mainnet.
Related: 3 reasons why Cosmos (ATOM) price is close to a new all-time high
New partnerships and protocol launches
A third factor that helped drive demand for KAVA was the addition of new partnerships and protocols for the Kava Network.
The latest protocols to be launched on the Kava co-chain architecture include NFT marketplace OpenBiSea, decentralized finance launchpad DexPad, and DeFi piggy bank WePiggy.
Other recent launches on Kava include the multichain DeFi lending protocol ForTube, the Ruby protocol bringing the first algorithmic stablecoin to the Kava Ethereum Virtual Machine (EVM), and an Ethereum co-chain integration with the Ren protocol.
Cointelegraph Markets Pro VORTECS™ data began spotting a bullish outlook for KAVA on April 1, ahead of the recent price surge.
Exclusive to Cointelegraph, the VORTECS™ Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements, and Twitter activity.
As seen in the chart above, the VORTECS™ Score for KAVA started rising on April 1st, roughly 94 hours before the price surged 25% over the next three days.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
https://cointelegraph.com/news/kava-turns-bullish-as-ethereum-co-chain-launch-initiates-push-toward-evm-compatibility Kava turns bullish as Ethereum co-chain launch heralds push towards EVM compatibility