09 Feb 2024 Arjun Agarwal
Dymension (DYM) Adds 125% To Its Price Following Its Mainnet Launch
The recently introduced modular blockchain Dymension (DYM), which increased by over 30% on the second day, is now the top gainer in the cryptocurrency market for the second day in a row.
Following Dymension's mainnet launch yesterday, DYM saw a nearly 55% increase. On the day of its debut, its trading volume increased by over 7,000%, and it kept on increasing after several hours of cooldown. The token has increased by almost 125% thus far, from $3.54 to $7.87.
The token swiftly overtook gaming tokens like The Sandbox and Axie Infinity as well as well-known meme coins like BONK to become the 60th largest cryptocurrency on the market. Because it is set to be the first platform to enable developers to create their own application chains using the Cosmos Interchain technology, the network gained popularity among the developer community very quickly.
The Inter-Blockchain Communication (IBC) protocol is a standardized means of securing and connecting application chains, or rollups, in the Dymension blockchain ecosystem.
By offering a layer one blockchain system designed to protect and connect rollups, it seeks to improve the scalability and efficiency of blockchain systems and standardize them in a manner similar to how the ERC standardizes tokens.
With this method, deployable, fast modular blockchains—also referred to as RollApps—can be created that are designed to solve scalability problems with traditional blockchain systems and provide extremely fast transaction speeds.
The reasons behind DYM's explosive popularity gain in the hours following its release are numerous. Over 528,000 wallets received DYM airdrops worth $390 million from the platform, enhancing its reputation among developers.
Shortly after launch, the token's valuation climbed to $5.2 billion, despite a disastrous beginning characterized by transactional errors and delays. Strong market interest and optimism for the project's future are reflected in this valuation.
The token has also been listed with trading pairs like DYM/USDT among others on well-known exchanges like KuCoin, Kraken, and Binance. Its accessibility and trading volume have increased dramatically as a result of these listings, which have increased interest and valuation.
Most significantly, the platform has established itself as a prominent participant in resolving scalability and efficiency issues in the blockchain space thanks to its capacity to build application-specific blockchains or RollApps.
These elements have significantly boosted Dymension's appeal and raised its value above pre-launch projections. In spite of this, Binance has designated DYM as a seed, highlighting its unique but erratic characteristics.
If the trading volumes continue to increase, DYM's future may turn out to be brighter than expected, as such a pump usually quickly slows down and enters into an accumulation phase. On the flip side, if the trading volumes drastically stop increasing, or even plummet, the price per DYM could easily fall to the levels before the mainnet launch.
Whether DYM can sustain its strong performance for the duration of the week is still to be seen.
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