Several tokens associated with the “Layer 0” network increased in value on Thursday, following a market-wide rally driven by Bitcoin and Ethereum.
According to CoinGecko statistics, the ATOM token of Cosmos has risen 7.6% in the last 24 hours, continuing a surge that has seen it increase 40.6% in the last 30 days. Currently, it is trading at $12.72. Evmos, a bridge project that uses Cosmos’ Inter-Blockchain Communication protocol to link the ecosystem to Ethereum, is presently trading at $2.80, a 21.1% increase. Other Cosmos initiatives such as Osmosis and JUNO have shown minor increases of 3.8% and 3.5% over the previous 24 hours, but they have increased more than many other large assets.
Despite the absence of a clear explanation for the ecosystem’s growth, ATOM’s weeks-long climb amid improved market confidence is undoubtedly a significant impact. When the native token of a blockchain network attracts market attention with a rally, other initiatives within the same ecosystem often benefit.
As the most valuable blockchains in a particular ecosystem, base layer blockchains tend to be less volatile. Consequently, initiatives with lesser market capitalizations may often outperform if ecosystem interest increases.
Cosmos promotes itself as “the Internet of Blockchains” and serves as a hub for numerous distinct blockchain networks. This is why it is referred to as a “Layer 0” network, similar to Polkadot, as opposed to Layer 1 networks like Ethereum and Solana that serve as application foundation chains.
Cosmos distinguishes itself from comparable initiatives by using a common security paradigm that helps to bootstrap new blockchains and enables them to communicate within a single ecosystem.