As #Nervos #Network planned to launch a #DeFi platform and new tier-2 offerings paid off , it increased by 341% in a month.
↘️Huge Boost
The cryptocurrency market continues to look for scaling solutions as decentralized finance (DeFi) applications struggle with rising fees. Some alternative solutions are of interest to investors.
For example, Nervos Network seduced investors' appetite with a 341% rally in one month. The project also bears the stamp of approval from the Chinese government and further raises the possibilities for future interest in this project.
↘️Nervos Network is a blockchain project based in China and supporting second layer scaling solutions. Since its inception, the project has sought to target decentralized finance (DeFi) and asset tokenization.
The Nervos Common Knowledge Base ( #CKB) network acts to support and process applications created through smart contracts using a high-performance second layer.
Unlike Bitcoin, CKB's Proof-of-Work ( #PoW) blockchain consensus algorithm is able to adjust the mining difficulty in response to network conditions.
This core layer includes CKByte (CKB), a native utility token used for resource management and miner incentives. Participants can also lock tokens in Nervos DAO to receive the compensation they have.
↘️Fundamentals That Increase Price
Nervos made headlines in August 2020, when it was integrated into China's blockchain-based Service Network (BSN) and five other unauthorized blockchains.
In December 2020, Nervos reached an important interoperability milestone by building a bridge between the Ethereum and the CKB network to simplify cross-chain transactions. Shortly after, the project published its "universal passport", which allows various blockchain developers to program using a single interface.
On January 26, Binance listed CKB, and a few weeks later, Nervos Network launched a $ 5 million fund to support projects building decentralized exchanges, lending platforms, and other DeFi-style protocols.
#VORTECS ™ data from Cointelegraph Markets Pro began detecting a bullish outlook for CKB on March 27 before the rally began.
The #Cointelegraph exclusive VORTECS ™ Score is an algorithmic comparison of past and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
The VORTECS ™ Score for CBK was green in late March and rose to 71 on March 29, about eight hours before the price started to rise 33% over the next two days.
Nervos Network's proposed second tier framework is still in beta testing. Muta chains will use Nervos CKB as their foundation, allowing developers to create side chains with different properties, including Delegate Oriented Evidence (DPoS) design.
Given that CKB posted a 341% increase to put the Nervos Network in the $ 1 billion market cap category last month, investors may consider waiting for the DeFi ecosystem to grow before adding positions.