DEX and interoperability upgrades present TomoChain (TOMO) needs DeFi dominance

The cryptocurrency market began the yr in full power and with all of the bullish breakouts occurring it may be troublesome to discern which initiatives are merely being pushed by the macro development and that are making beneficial properties based mostly on strong tech developments and bettering fundamentals. 

As the worth of Bitcoin dropped more than $11,000 between Jan. 10 and Jan. 11, quite a few altcoins noticed double-digit losses however just a few DeFi and layer 2-oriented cash bucked the development and rapidly recovered as BTC worth consolidated.

For instance, TomoChain (TOMO) noticed its worth double from $0.65 on Jan. 2 to $1.29 on Jan. 12. With such a robust efficiency throughout one of many largest Bitcoin sell-offs in crypto historical past, TOMO deserves a better look to see what fundamentals are supporting such a robust transfer.

TOMO/USDT 4-hour chart. Supply: TradingView

A serious interoperability announcement boosts sentiment

With the rise of the DeFi sector over the previous yr, a majority of which operates on the Ethereum community, interoperability with the highest altcoin has change into a needed function for any undertaking that trying to achieve traction and a big consumer base.

The necessity for low price, scalable Etheruem alternate options seems to be one of many elements driving TOMO worth larger.

On Jan. 7, the group launched an replace for the TomoIssuer and TomoBridge platforms. The improve permits any consumer to challenge a wrapped ERC-20 token and checklist it on TomoBridge as a TRC-21 token.

With charges on the Ethereum community hovering once more, builders and merchants can decide to make use of TomoBridge to swap ERC-20 tokens extra effectively than they might on the Ethereum community.

Lately TomoChain additionally unveiled the Zorro release which incorporates an improve to its Ethereum Digital Machine (EVM) and the present model of Solidity. With this improve, builders can “simply deploy code from different EVM chains to TomoChain with minimal customization.”

Collectively, the Zorro launch, TomoIssuer, and TomoBridge have the potential to seize a number of the liquidity and transactions from the Ethereum-dominated DeFi area whereas additionally serving to alleviate the congestion and excessive charges that at the moment plague the Etheruem community.