Evmos launched its eponymous plan on Wednesday, combining the finest of the Ethereum Virtual Machine (EVM) with the Cosmos-based InterBlockchain Communication (IBC) protocol. Evmos was supposed to launch on February 28. However, it was postponed to ensure a flawless launch.
The enhancements to Ethereum based projects may make it more enticing and sustainable for wider usage, but experts are waiting to see how investors and firms who create technology on Ethereum’s platform react to the changes. If Ethereum’s forthcoming upgrade to Ethereum 2.0 goes well. The additional features might make Ethereum more economical for consumers to mint and build goods, as Ethereum’s service costs are infamously exorbitant right now.
The Ethereum token’s price action, although positive, has not reached the predicted trajectory yet. Moreover, Ether has dropped 1.74% of its value in the last 24 hours, experiencing a positive sentiment the previous day. However, the price action has been very impressive for the last seven days for ETH, with a whopping 21% climb. It brought the token over $2,900 level after it plunged to $2,200 a few weeks ago. However, doubts about Ethereum’s ability to hold in this position follows the long unattended issues like gas fees and transaction speed on Ethereum’s layer-1. According to this Ethereum price prediction, ETH could once again break $4,000 in 2022, and a recent Ethereum prediction by Bloomberg intelligence analyst Mike McGlone has it ending the year between $4,000-$4,500.
On the other hand, the Ethereum Virtual Machine is becoming the most preferred project among developers for creating aApps. EVM helps projects to create an ecosystem for their project separate from the Ethereum network. Gaining traction as an alternative for layer-1 of Ethereum, EVM compatible projects can connect with the protocols running on the Ethereum network. This is made possible by a process known as porting. This solution helps projects to establish connectivity with the main Ethereum network while also being protected from slowness and expenses.
What makes Evmos more exciting is the introduction of the EIP-712 protocol in this new project. This ensures smooth connectivity between all the Ethereum-based projects in the DeFi sector.
As the project expects to accommodate several DeFi projects and forks, Ethereum’s relevance might go higher by some degrees. Rari Capital, UniSwap, Balancer, Olympus and CryptoPunks are some of the forks set to be introduced on Evmos during the launch. These forks would also be making use of the newly designed tokenomics from Evmos. This design revised the existing relationships between miners and users to bring in ideas like fee sharing and incentives. According to Frederico Küllmer, this native tokenomy is built differently from those implemented in Polygon and Avalanche to align all the users in the incentives model.
The projects preferring Ethereum Virtual Machine to create networks like Evmos would positively impact the value of ETH in the market as everyone is expecting the launch of layer-2 solution for Ethereum, the upcoming projects are increasingly interested in EVM. This software platform helps develop DeFi projects with their ideas and designs while also ensuring their links to the Ethereum network. These up-and-coming projects being built based on EVM widen the market for ETH by adding to the network. It helps Ethereum maintain its dominion even without a layer-2 solution which is one of the most anticipated drops from Ethereum.