3 reasons why Cosmos (ATOM) price is near a new all-time high

Share This Post

Newly launched cross-chain bridges to Ethereum and the upcoming Theta upgrade are expanding the Cosmos ecosystem and potential catalysts of ATOM’s recent 75% gain.

Blockchain network interoperability is shaping up to be one of the main themes for the cryptocurrency ecosystem in 2022. New users are continuing to onboard into the growing world of crypto while both new and established projects search for the chain that will best serve the needs of their protocol and community. 

One project that has 2022 off to a bullish start thanks to its focus on facilitating the communication between separate networks is Cosmos (ATOM). This project bills itself as “the internet of blockchains” and seeks to facilitate the development of an interconnected decentralized economy.

Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $25.06 on Dec. 30, the price of ATOM has rallied 75% to hit a daily high at $43.98 on Jan. 4 as its 24-hour trading volume spiked to $2.54 billion.

ATOM/USDT 1-day chart. Source: TradingView

Three reasons for the surging price of ATOM include the launch of a cross-chain bridge which makes the protocol Ethereum Virtual Machine (EVM) compatible and an upcoming Theta upgrade which will rapidly expand the ecosystem of connected chains and applications.

Cosmos nears EVM compatibility

The most significant development that has provided a boost to ATOM is the rollout of Evmos, an EVM-compatible protocol that will allows assets and projects that operate on the Ethereum (ETH) network to migrate over to the Cosmos ecosystem.

Up to this point, there had not been a way for Ethereum-based projects to interact with the Cosmos ecosystem. This significantly limited the number of projects and tokens that could interact with DeFi and NFT projects in the Cosmos ecosystem.

Gravity Bridge, which launched on Dec. 15, is another project dedicated to facilitating the bridging of assets between Ethereum and Cosmos and currently it operates as a standalone chain. Plans to migrate to the Cosmos Hub in early 2022 are currently underway.

Preparing for the Theta upgrade

A second development that has put wind in the sails of Cosmos is the protocol’s upcoming Theta upgrade which is scheduled for March 31.

Some of the new features included in the upgrade include the addition of meta-transactions, where transactions can be submitted by separate accounts that receive tips and the introduction of inter-chain accounts which allow users to manage accounts across multiple blockchains. Another feature is liquid staking, a system where users utilize the value of staked assets in other parts of the Cosmos ecosystem.

The Theta upgrade also includes NFT modules, which enable the simple management of NFT identifiers, their owners and associated data.

Related: ROSE gains 54% in a week as Oasis Network ecosystem expands

Expanding ecosystems are typically bullish

A third reason for the bullish momentum of ATOM is ecosystem’s expansion to 28 live, interconnected chains that total more than $68 billion in total value.

Some of the more established chains that have joined the Cosmos ecosystem include the Binance Smart Chain, Terra (LUNA) and Crypto.com (CRO), while the biggest projects using Cosmos’ software development kit (SDK) include Osmosis (OSMO), Secret (SCRT), Oasis Network (ROSE) and Kava (KAVA).

As the bridge protocols linking Cosmos with other EVM-compatible networks are established, the number of chains connected to the Cosmos Hub is likely to increase. This will bring an increase in the total value of the ecosystem along with it.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for ATOM on Dec. 29, prior to the recent price rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. ATOM price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score for ATOM began to pick up on Dec. 28 and climbed to a high of 81 just as the price began to increase 67% over the next six days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Read Entire Article
spot_img

Related Posts

Crypto Analyst Predicts 28,900% Rally To $154 For XRP Price, Here’s When

Crypto analyst CryptoBull recently highlighted a bullish pattern that could send the XRP price to three figures However, the analyst failed to give an exact timeline for when this massive rally would

Bitcoin Stalls Below $72,000: Is This The Weakest BTC Bull Run In 15 Years?

Bitcoin prices are firm when writing and trading at around multi-month highs but below the all-important liquidation line at around $72,000 While up roughly 20% from May 2024 lows, some analysts are

US Treasury Secretary Yellen Warns of Challenges in Controlling Deficits and Interest Expense

US Treasury Secretary Janet Yellen has stressed the importance of managing US borrowing needs amid higher long-term interest rates, emphasizing the need to boost revenue in budget negotiations

Retail activity dominates Bitcoin, overshadowing institutional moves

When analyzing the Bitcoin market, it’s equally important to understand the behavior of different market participants as it is to understand the technical foundations of Bitcoin’s price

Apu Memecoin Soars, Reaching 11,600 Token Holders with Strong Community Support

PRESS RELEASE Apu Apustaja, a new memecoin making waves in the industry, has announced impressive support from its rapidly growing community, including over 11,650 coin holders and more than 13,000

Shiba Inu Barrels Toward Another Milestone In Major Metric, Price Shows No Signs Of Life

The Shiba Inu (SHIB) ecosystem is set to record another milestone, with the layer-2 network Shibarium approaching 5 million blocks Despite this development, Shiba Inu’s price has remained tepid for
- Advertisement -spot_img