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Home Altcoins

Evmos moves away from Cosmos: Gauging ATOM’s reaction

November 9, 2023
in Altcoins
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Evmos moves away from Cosmos: Gauging ATOM’s reaction
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  • Evmos has announced its plans to focus on only Ethereum transactions.
  • ATOM did not seem affected, as it traded around $8.

On the 7th of November, Evmos announced its intention to stop Cosmos [ATOM] transactions on its Ethereum Virtual Machine [EVM]. The focus will be shifted to Ethereum [ETH] transactions alone.

🔥 Big News!🔥

Evmos has made a strategic decision to align closer with Ethereum by deprecating Cosmos transactions by Q4 2024 to:

• address compatibility challenges,
• increase efficiency,
• bring uniformity to user and developer experiences.https://t.co/G03OVdFd1g

— Evmos ☄️ (@EvmosOrg) November 7, 2023

The above transition will likely be completed by the third quarter of 2024, as explained in the official blog post. Evmos cited alignment with Ethereum as one of the primary reasons behind this move. 

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The Evmos team also said that concentrating solely on one transaction format would enhance engineering efficiency. Furthermore, they pointed out that maintaining two different transaction hash types introduces unnecessary difficulty for both wallet and explorer developers.

How this development impacts Cosmos

As part of this transition, fees generated from the discontinued Cosmos transactions will be permanently removed (burned). Users who exclusively use Cosmos wallets will have to switch to EVM-compatible clients.

Also, well-known wallets like WalletConnect, Rabby, and MetaMask are ready to offer the necessary support for this migration. Hardware wallets, including Ledger, will get support through their dedicated Ethereum applications.

See also  Dormant Ethereum holder moves $5.8M in ETH - More profit-taking now?

Developers will also need to adapt their transaction-building and broadcasting processes, and make them Ethereum-oriented. According to the post, this will be facilitated through the use of the standard JSON-RPC service.

Importantly, despite all of these changes, Evmos will maintain its connection to the Cosmos network.

How ATOM reacted

AMBCrypto’s analysis of ATOM’s daily timeframe chart showed that the token remained unaffected by Evmos’ developments. At the time of this report, it was trading at around $8, showing a gain of over 2% in value.

ATOM/USDT price trend

Source: TradingView


Read Cosmos’ [ATOM] Price Prediction 2023-24


Notably, despite this encouraging price surge, ATOM has struggled to break above the resistance level, shown by the long Moving Average (represented by the blue line).

Also, the short Moving Average (depicted by the yellow line) remained a strong support area at press time, positioned at around $7.

Tags: ATOMsCosmosEvmosGaugingMovesReaction

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