Tech

Moonbeam (GLMR) launch brings EVM interoperability closer to the Polkadot network

01/20/2022
Bitcoin Ethereum News

Cross-chain compatibility with the Ethereum (ETH) network has become a necessary component for any layer-one protocol looking to remain relevant because a majority of projects and funds locked in smart contracts are found on the top-ranked smart contract platform. 

After years of development and promises of interoperability, the Polkadot network moved toward its first Ethereum virtual machine (EVM) compatible smart contract protocol with the launch of Moonbeam (GLMR). The platform is designed to make it easy to use Ethereum developer tools to build or re-deploy Solidity projects in a Substrate-based environment.

Data from Cointelegraph Markets Pro and TradingView shows that after a volatile start, which saw its price swing from a low of $8.40 on Jan. 11 to a high of $15.97 on Jan. 14, GLMR is now consolidating near $10.45.

GLMR/USDT 1-hour chart. Source: TradingView

Three reasons why GLMR could see increased attention from investors are Moonbeam’s official launch on Polkadot with cross-chain support for Ethereum, its integration with multiple bridging protocols that provide access to the wider crypto community and the launch of Moonbeam-based projects that are attracting value to the network.

Moonbeam could get the first mover advantage

The most significant development providing momentum for Moonbeam has been the project’s official launch on the Polkadot network,  a move which should bring cross-chain interoperability with the Ethereum network to the sharded multi-chain protocol.

After becoming the first project to secure one of the Polkadot parachain auction slots in early November, Moonbeam has become the first fully operational parachain on the network. This enabled more than 80 projects already built on Moonbeam to be deployed.

The full launch process began on Dec. 17 and took a period of three weeks to gradually roll out functionality and enable EVM and balance transfers. GLMR token holders can now add the network to their MetaMask wallet and transfer assets within the Moonbeam ecosystem or across other EVM-compatible networks.

Integrations with cross-chain bridges

Another factor helping GLMR establish itself within the crypto ecosystem has been its integration into cross-chain bridge-equipped protocols that allow Moonbeam network assets to migrate to other protocols and networks.

Some of the more popular bridges that have integrated Moonbeam include the cBridge from Celer and the Multichain swap protocol, which has announced support for ten assets that can be bridged between Moonbeam and Ethereum.

Related: Industry players respond to Vitalik Buterin’s thoughts on cross-chain ecosystems

New projects bring value to the Moonbeam network

A third factor helping the Moonbeam network get up and running has been the interest from developers who have launched their projects on the network. This has helped attract users and assets to the newly launched protocol.

These include projects like the automated market maker protocol Solarflare, the decentralized exchange (DEX) StellSwap and the cross-chain DEX protocol ZenLink.

As a result of multiple protocol launches on Moonbeam, the total value locked (TVL) on the network reached nearly $200 million during its first week live on the Polkadot mainnet.

Total value locked on Moonbeam. Source: Defi Llama

The top-ranking protocol on Moonbeam in terms of TVL is StellaSwap with $89.3 million followed by BeamSwap with $46.4 million.

The views and opinions expressed here 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 conduct your own research when making a decision.