Home Altcoins News Cosmos is Still Underrated and Why ATOM Is Still Highly Promising

Cosmos is Still Underrated and Why ATOM Is Still Highly Promising

Cosmos ATOM

The cryptocurrency market is still in a cumulative phase where prices are still discounted, and investors are constantly looking for the next best coin that can deliver the maximum gains. Unfortunately, picking the right cryptocurrency to ride the next bullish wave is not as easy as one might think. However, there are crypto projects out there that have not received as much attention as they should, despite having huge potential and Cosmos (ATOM) happens to be one of them.

Cosmos is a blockchain project that has a heavy focus on interoperability. Some of the top crypto projects such as Terra and BNB were built using the Cosmos SDK, but this is just the tip of the proverbial iceberg of what this project is capable of.

Cosmos is the brainchild of a company called Tendermint Inc., and so far it has attracted more than 20 companies to develop on its blockchain. Some of them include Althea, IRIS Network, Akash, Interchain GmbH, and Regen Network among others.

Why is Cosmos suited for robust growth moving forward?

The internet of value facilitates the development of a fat layer protocol that allows protocol participants to benefit. Cosmos is strategically positioned to leverage this value through its unique approach to facilitating blockchain interconnectivity. Most of the other projects that want to provide interconnectivity create bridges but Cosmos uses its blockchain as a hub that acts as a junction through which other blockchains can connect.

The approach to blockchain interoperability facilitates a more affordable approach rather than creating multiple bridges that connect from one blockchain to another. ATOM, the native coin on the Cosmos blockchain is used to facilitate governance throughout the network, as well as staking through the novel proof of stake byzantine fault-tolerant consensus engine mechanism called Tendermint Core. It can also be used to facilitate transactions across its network. For example, when moving crypto holdings from one blockchain ecosystem to another, thus boosting the demand for ATOM.

Note that Cosmos is a smart contract-enabled blockchain and its capabilities, which makes it ideal for developing decentralized finance applications, is another area that can deliver strong demand for ATOM. Cosmos already supports as much as 10,000 transactions per second, which means projects do not have to worry about scalability and operational speeds.

Cosmos ATOM USD

Source: CoinMarketCap

How to benefit from opportunities on the Cosmos blockchain through ATOM

ATOM is one of the most promising blockchain projects judging by its features and prospective demand as the cryptocurrency market continues to mature. Demand for blockchain interoperability will continue to rise in the next few years, thus leading to high levels of Demand for the Cosmos blockchain. Expected demand growth will undoubtedly generate more value for the ATOM coin but where will this demand come from?

Tendermint has been working on a cross-chain DEX that will leverage the Cosmos blockchain. It is one of the ongoing developments that will increase ATOM utility, leading to higher demand for the native cryptocurrency. Users can stake their ATOM coins to earn passive income for providing liquidity on the decentralized exchange. The platform also plans to introduce staking derivatives in 2022, which will affect the supply of ATOM through the burning of slashed collateral, thus reducing its supply.

Such developments will not only boost ATOM’s utility but also improve its tokenomics. There are currently 218 million ATOM coins in supply with a market cap of $2.9 billion. ATOM presently trades at $13.39, which means a substantial market cap increase with a potential supply reduction will likely facilitate positive price action in the future. The price of Atom will reach $45 if its market cap reaches $10 billion, which does not seem far off given the network’s utility and ongoing developments. If its market cap soars above $30 billion with a consistent supply, it could easily be worth $130 and above.

Read more about:
Share on

Sydney Ifergan

Sydney has 20+ years commercial experience and has spent the last 10 years working in the online marketing arena and was the CMO for a large FX brokerage.

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.