DEX and interoperability upgrades show TomoChain (TOMO) wants DeFi dominance

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The cryptocurrency market started the year in full force and with all the bullish breakouts happening it can be difficult to discern which projects are simply being driven by the macro trend and which are making gains based on solid tech developments and improving fundamentals. 

As the price of Bitcoin dropped more than $11,000 between Jan. 10 and Jan. 11, a number of altcoins saw double-digit losses but a few DeFi and layer 2-oriented coins bucked the trend and quickly recovered as BTC price consolidated.

For example, TomoChain (TOMO) saw its price double from $0.65 on Jan. 2 to $1.29 on Jan. 12. With such a strong performance during one of the largest Bitcoin sell-offs in crypto history, TOMO deserves a closer look to see what fundamentals are supporting such a strong move.

TOMO/USDT 4-hour chart. Source: TradingView

A major interoperability announcement boosts sentiment

With the rise of the DeFi sector over the past year, a majority of which operates on the Ethereum network, interoperability with the top altcoin has become a necessary feature for any project that looking to gain traction and a large user base.

The need for low fee, scalable Etheruem alternatives appears to be one of the factors driving TOMO price higher.

On Jan. 7, the team released an update for the TomoIssuer and TomoBridge platforms. The upgrade allows any user to issue a wrapped ERC-20 token and list it on TomoBridge as a TRC-21 token.

With fees on the Ethereum network soaring again, developers and traders can opt to use TomoBridge to swap ERC-20 tokens more efficiently than they could on the Ethereum network.

Recently TomoChain also unveiled the Zorro release which contains an upgrade to its Ethereum Virtual Machine (EVM) and the current version of Solidity. With this upgrade, developers can “easily deploy code from other EVM chains to TomoChain with minimal customization.”

Together, the Zorro release, TomoIssuer, and TomoBridge have the potential to capture some of the liquidity and transactions from the Ethereum-dominated DeFi space while also helping alleviate the congestion and high fees that currently plague the Etheruem network.