Coinspeaker
Cosmos Hub (ATOM) Launches New Cross-Chain Protocol Dubbed Valence
Cosmos Hub (ATOM), a top-tier layer zero blockchain with a fully diluted valuation of about $2.56 billion, has announced the launch of a new cross-chain protocol dubbed Valence. According to the Cosmos team, the Valence protocol will enhance further cohesion and cooperation throughout the interchain ecosystem.
Developed by the Timewave developers, the Valence protocol will work together with the Inter-Blockchain Communication (IBC) project to enhance web3 economic interrelation. Moreover, the Valence protocol will further the IBC ecosystem to a programmatic economic relationship between crypto-native organizations.
The economic relationships enabled by Valence via a wide range of needs including simple token swaps or adjusting treasury compositions in accordance to the market conditions.
“Valence increases the scale of interoperability by working not only with Cosmos SDK chains, but also with any crypto-native entity that is capable of expressing an intent, including Bitcoin Layer 2s (L2), Ethereum protocols, Solana DAOs, and degens and regens anywhere,” the company noted.
Valence Utility on Cosmos Network
The launch of the Valence protocol on the Cosmos ecosystem will introduce a new economic opportunity for the existing web3 projects. For instance, the Valence protocol will allow further network transparency to facilitate seamless liquid restaking.
The Cosmos team further noted that any crypto-native organization can use Valence to create lending protocol-owned liquidity (POL) markets in addition to liquid restaking.
The Valence protocol can also be used to enhance altcoin liquidity in different blockchains. For instance, the Cosmos announced that Neutron and Stargaze recently engaged in a bilateral POL deal on Astroport.
Market Impact
The launch of the Valence protocol is a strategic move to ensure the mass adoption of the Cosmos ecosystem amid the ongoing mainstream development of web3 projects. The Cosmos network has already attracted dozens of web3 projects led by Stride, Stargate, Crypto.com, Regen network, Celestia, dYdX, and Injective, among many others.
As of this report, Cosmos’s IBC has facilitated more than $108 billion in connected web3 projects across different chains. By lowering the development costs and increasing the Interchain security, the Cosmos network has established itself as a major interoperability platform.
Following the launch of the Valence protocol, the Cosmos network is increasing the adoption rate of its ATOM coin, which is used for governance purposes. However, ATOM price was not spared from the ongoing crypto selloff that was triggered by Bitcoin price dip below $66k in the past 24 hours.
According to the latest market data, ATOM price has dropped around 22 percent in the past two weeks to trade at about $6.53 on Tuesday. The mid-cap altcoin is currently retesting the 2022 crypto bear market lows, which could offer a solid solace to the ongoing selloff.
Furthermore, ATOM’s price against the US dollar has formed a triple bottom with a bullish divergence on the weekly Relative Strength Index (RSI).
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Cosmos Hub (ATOM) Launches New Cross-Chain Protocol Dubbed Valence
Source: https://www.coinspeaker.com/cosmos-hub-atom-valence/