Cosmos’ Interchain embraces this token’s issuance through KAVA
- Cosmos enlists Kava blockchain for USDT’s rollout on interchain.
- USDT interchain rollout fails to yield a significant impact on KAVA.
Cosmos [ATOM] is one of the blockchain networks that have held strong to the idea of an internet of blockchains. However, that vision has been met with challenges regarding interconnectedness. The network’s latest announcement underscores a move aimed at overcoming one of those challenges.
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Cross-chain transfers usually require bridging and that can involve expensive swaps. But what if DeFi users could transfer one type of asset from one network to another without requiring swaps?
That is what Cosmos aims to achieve with the latest development. The network just announced that USDT is now available on Interchain.
— Cosmos – Internet of Blockchains ⚛️ (@cosmos) July 7, 2023
According to the announcement, the Kava blockchain will facilitate USDT’s launch on interchain. This development will not only make it easier for DeFi users to transfer funds from one chain to another but also make it more cost-efficient.
What does this mean for USDT? From a utility point of view, having USDT easily available and transferable in the interchain ecosystem might have some advantages. For example, it translates to easier access to liquidity on more DeFi platforms. Users may also find it easier to use DeFi with native USDT easily transferable within the interchain ecosystem.
Assessing KAVA’s performance
As noted earlier, the Kava blockhain which is a Cosmos SDK chain will facilitate the USDT rollout on the interchain. But what does this mean for the Kava network and its native cryptocurrency? Perhaps this major development may unlock more visibility for the network.
So far Kava has seen a significant surge in market cap in the last 30 days. Kava’s marketcap bottomed out at slightly over $421 million in mid-June but peaked above $704 million on 25 June. It hovered around $578.7 million in the last 24 hours.
Kava’s volume also achieved its highest level in the last four weeks on 25 June. It has since receded back to its monthly lows. One would think that Kava would register strong development activity considering the network’s central role in the USDT’s rollout on interchain. However, that has not been the case since the development activity has been declining for the last four weeks.
How many are 1,10,100 KAVAs worth today
But what about KAVA’s price action? It has so far been one of the most volatile cryptocurrencies. This is evident by the up-and-down movement delivered in the last few months. One KAVA token traded for $0.93 at press time which represented a healthy premium from its lowest price point on a YTD basis.