Cross-chain compatibility with the Ethereum (ETH) network has become a necessary component for any layer-one protocol that wants to stay relevant, as the majority of projects and funds locked in smart contracts are based on the high-level smart contract platform.
After years of development and promises of interoperability, the Polkadot network moved toward its first Ethereum Virtual Machine (EVM) compatible smart contract protocol with the launch of Moonbeam (GLMR). The platform was designed to simplify using Ethereum developer tools to build or redeploy Solidity projects in a substrate-based environment.
Data from Cointelegraph Markets Pro and TradingView shows that after a volatile start that saw the price fluctuate from a low of $8.40 on Jan. 11 to a high of $15.97 on Jan. 14, GLMR is now in the Consolidated near $10.45.
GLMR/USDT 1 hour chart. Source: TradingView
Three reasons why GLMR may receive increased attention from investors are the official launch of Moonbeam on Polkadot with cross-chain support for Ethereum, its integration with multiple bridging protocols providing access to the broader crypto community, and the launch of Moonbeam-based projects that attract value to the network.
Moonbeam could get the first mover advantage
The most significant development giving momentum to Moonbeam was the project’s official launch on the Polkadot network, a move intended to bring the sharded multi-chain protocol cross-chain interoperability with the Ethereum network.
1/ Moonbeam is LIVE on @Polkadot! We’re excited to announce that Moonbeam is the first fully functional parachain on Polkadot. Moonbeam will bring many new integrations, activities, and users to brighten up Polkadot’s ecosystem. ⚡ #MoonbeamLightsUphttps://t.co/yBhgyWwaRn
— Moonbeam Network (@MoonbeamNetwork) January 11, 2022
After being the first project to secure one of the Polkadot parachain auction venues in early November, Moonbeam is the first fully operational parachain on the network. This made it possible to provide more than 80 projects that were already built on Moonbeam.
The full rollout process began on December 17th and took three weeks to gradually roll out functionality and enable EVM and balance transfers. GLMR token holders can now add the network to their MetaMask wallet and transfer assets within the Moonbeam ecosystem or via other EVM-compatible networks.
Integrations with cross-chain bridges
Another factor that helped GLMR establish itself in the crypto ecosystem was its integration with cross-chain bridge-equipped protocols, which allow Moonbeam network resources to migrate to other protocols and networks.
We’re excited to announce that cBridge now supports @MoonbeamNetwork asset bridging between 15 chains!
Bridge your $USDT, $USDC and $CELR at https://t.co/35fICZsz3A and use them on @zenlinkpro! More Dex partners and tokens to come!
Inter-Chain Message Framework coming soon! pic.twitter.com/ahdHrUVm4f
— CelerNetwork (@CelerNetwork) January 14, 2022
Some of the more well-known bridges that have integrated Moonbeam include Celer’s cBridge and the multichain swap protocol, which has announced support for ten assets that can be bridged between Moonbeam and Ethereum.
Related: Industry players react to Vitalik Buterin’s thoughts on cross-chain ecosystems
New projects add value to the Moonbeam network
A third factor that helped the Moonbeam network take off was the interest from developers who started their projects on the network. This has helped attract users and assets to the newly launched protocol.
These include projects such as automated market-maker protocol Solarflare, decentralized exchange (DEX) StellSwap, and cross-chain DEX protocol ZenLink.
As a result of multiple protocol launches on Moonbeam, the total network locked value (TVL) reached nearly $200 million in the first week live on the Polkadot mainnet.
Total locked on Moonbeam. Source: Defi Llama
The top ranked protocol on Moonbeam in terms of TVL is StellaSwap at $89.3 million, followed by BeamSwap at $46.4 million.
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