Gnosis (GNO) price rallies 50%+ after CowSwap users claim COW airdrop

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This week Gnosis (GNO) worth notched a swift 50%+ rally after the challenge took one other step ahead in its transition to the Coincidence of Desires Procotol, or CoW, an interface that gives merchants safety from miner extracted worth (MEV).

Information from Cointelegraph Markets Professional and TradingView exhibits that the worth of GNO has gained 86% over the previous seven days, rising from a low of $308 on March 21 to an intraday excessive at $574 on March 28.

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GNO/USDT 4-hour chart. Supply: TradingView

Three causes for the speedy worth improve for GNO are the discharge of the CowSwap (COW) token, which was airdropped to Gnosis holders, merchants’ appreciation of the MEV-protection supplied by the protocol and the potential for GNO holders to obtain extra airdrops sooner or later.

COW drops!

The newest worth surge seems primarily related to the official launch of COW, the native token of the CowSwap protocol which gives merchants MEV-protection.

COW tokens have been airdropped to GNO holders based mostly on the variety of tokens held or staked throughout a snapshot that was taken again in early January, with 5% of COW tokens going to GNO holders who may obtain an additional 5% if that they had locked their GNO tokens on the protocol for a interval of 1 yr.

On the time of writing, COW has been listed on Uniswap and is buying and selling at a worth of $1.35.

MEV safety options add worth to GNO and COW

The principle draw of the CowSwap protocol is the MEV-protections supplied that may assist merchants get higher phrases on swaps and keep away from being entrance run or the sufferer of a sandwich assault.

Miner extracted worth is a type of “invisible” tax that happens on the Ethereum (ETH) community the place miners can improve their profitability by together with, excluding or re-ordering transactions throughout the block they produce.

This characteristic permits miners to conduct sure exploits together with front-running, back-running and transaction sandwiching, which assist to extend income on the expense of merchants.

According to knowledge from flashbots, greater than $605 million in worth has been extracted by miners utilizing this course of since January 2020 — a determine which CowSwap appears to assist mitigate transferring ahead via its introduction of MEV safety.

Associated: Gnosis (GNO) continues uptrend after vCOW airdrop and rebrand to CoW Protocol

Future airdrops may give a long-term enhance to GNO worth

A 3rd issue serving to to spice up the demand for GNO is the prospect of extra airdrops coming to GNO holders and stakers.

This contains an allocation of the soon-to-be-released SAFE token for Gnosis Secure, a platform within the Gnosis ecosystem that’s designed to securely handle digital property.

In line with knowledge from Dune Analytics, there’s presently greater than $77 billion value of worth held in Gnosis Secure contracts, a considerable quantity that hints on the quantity of belief varied depositors have within the protocol.

Whole USD worth of property saved in Gnosis Secure. Supply: Dune Analytics

Documentation launched by Gnosis Secure indicates that 20% of SAFE tokens can be distributed to the GNO group by way of direct distribution to GNO holders and a considerable deposit into the GnosisDAO treasury.

VORTECS™ knowledge from Cointelegraph Markets Professional started to detect a bullish outlook for GNO on March 23, previous to the current worth rise.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market situations derived from a mix of knowledge factors together with market sentiment, buying and selling quantity, current worth actions and Twitter exercise.

VORTECS™ Rating (inexperienced) vs. GNO worth. Supply: Cointelegraph Markets Professional

As seen within the chart above, the VORTECS™ Rating for GNO started to select up on March 23 and hit a excessive of 78 round 9 hours earlier than the worth elevated 78% over the subsequent 4 days.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it’s best to conduct your personal analysis when making a choice.

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