- Cosmos Enables Kava Blockchain for USDT Rollout on Interchain.
- The rollout of the USDT Interchain has no significant impact on KAVA.
Cosmos [ATOM] is one of the blockchain networks that has strongly adhered to the idea of an internet of blockchains. That vision, however, ran into interconnectedness challenges. The network’s latest announcement underlines a move aimed at overcoming one of those challenges.
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Cross-chain transfers usually require bridging, which can involve costly swaps. But what if DeFi users could transfer one type of asset from one network to another without the need for swaps?
That is what Cosmos aims to achieve with the latest development. The network just announced that USDT is now available on Interchain.
Welcome @Tether_to to the # intermediate chain ⚛️@KAVA_CHAINa #Cosmos SDK blockchain, brings the native issuance of USDT in the # intermediate chain ecosystem!
From now on, #USDT will be interoperable and flow around the interchain thanks to the power of #IBC pic.twitter.com/kZ4v5sQwgV
— Cosmos – Internet of Blockchains ⚛️ (@cosmos) July 7, 2023
According to the announcement, the Kava blockchain will facilitate the launch of USDT on interchain. This development will not only make it easier for DeFi users to transfer money from one chain to another, but will also make it more cost-efficient.
What does this mean for USDT? From a utility standpoint, having USDT readily available and transferable in the interchain ecosystem can have some benefits. For example, it translates into easier access to liquidity on more DeFi platforms. Users may also find it easier to use DeFi with native USDT that is easily transferable within the interchain ecosystem.
Assess KAVA’s performance
As noted earlier, the Kava blockchain, a Cosmos SDK chain, will facilitate the rollout of USDT on the interchain. But what does this mean for the Kava network and its own cryptocurrency? Perhaps this important development can bring more visibility to the network.
So far, Kava has seen a significant increase in market cap over the past 30 days. Kava’s market cap hit a low of just over $421 million in mid-June, but peaked above $704 million on June 25. It hovered around $578.7 million in the past 24 hours.
Source: Sentiment
Kava volume also reached its highest level in four weeks on June 25. It has since fallen back to its monthly lows. You would think that Kava would register strong development activity given the network’s central role in USDT’s interchain rollout. However, that has not been the case as development activity has slowed over the past four weeks.
Source: Sentiment
How much are 1,10,100 KAVAs worth today
But what about KAVA’s price action? It has been one of the most volatile cryptocurrencies to date. This is evident from the up and down movement of the past few months. One KAVA token was trading for $0.93 at press time, representing a healthy premium from its lowest price on a YTD basis.
Source: TradingView