Gnosis (GNO) rewards rose rapidly this week after the project took a new step forward by moving to the Coincidence of Wants Procotol or CoW interface, which gives traders Value Extracted Value (MEV) protection.
Data from Cointelegraph Markets Pro and TradingView shows that the price of GNO is up 86% over the past seven days, rising from a low of $308 on March 21st to an intraday high of $574 on March 28th.
GNO/USDT 4 hour chart. Source: Trading View
Three reasons for GNO’s rapid price growth are the launch of the CowSwap (COW) token that was sent to Gnosis holders, the high appreciation by traders of the MEV protection provided by the protocol, and the opportunity for GNO holders to receive more airdrops in the future.
The recent price surge appears to be mainly due to the official release of COW, the original CowSwap protocol token that provides traders with MEV protection.
COW is sent to GNO holders based on the number of tokens held or staked at the time of the snapshot taken in early January, with 5% COW for GNO holders receiving an additional 5% if they close the GNO. Tokens are on the protocol for a period of one year.
At the time of writing, COW is listed on Uniswap and is trading at $1.35.
MEV protection features add value to GNO and COW
The main benefit of the CowSwap protocol is the MEV protection it provides, which can help traders get better swap terms and avoid becoming a leader or being hit by a sandwich attack.
The cost of mining for miners is a type of “invisible” tax that occurs on the Ethereum (ETH) network, where miners can increase profitability by including, eliminating, or rearranging transactions in the block they produce.
This feature allows miners to perform some loopholes, including forward and reverse playback and sandwich transactions, which helps to increase profits at the expense of the trader.
According to flashbots, miners who have been using this process since January 2020 have mined more than $605 million, a figure that appears to have been set by CowSwap to help cut further action with the introduction of MEV protection.
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Future airdrops could give GNO a long-term boost. price
A third factor driving the increase in demand for GNOs is the possibility that more airborne droplets will reach GNO owners and participants.
This includes providing the soon-to-be-released SAFE token to Gnosis Safe, a platform in the Gnosis ecosystem dedicated to the secure management of digital assets.
According to Dune Analytics, Gnosis Safe’s contracts are currently valued at over $77 billion, a significant amount that shows how confident different contributors are in the protocol.
The total value of assets held in Gnosis Safe, in USD. Source: Dune Analytics.
The documentation from Gnosis Safe states that 20% of the SAFE tokens will be distributed to the GNO community through direct distribution to GNO holders and a significant GnosisDAO tax contribution.
VORTECS data from Cointelegraph Markets Pro began to reveal a bullish outlook for GNO on March 23, ahead of the recent price hike.
VORTECS Men’s Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions based on a range of data points including market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS™ result (green) compared to GNO price. Source: Cointelegraph Markets Pro.
As shown in the chart above, GNO VORTECS first results began to recover on March 23, peaking at 78 about nine hours before the price surged 78% over the next four days.