crypto: Cosmos is beating crypto weakness to scale new highs! Does this rally have more legs?

New Delhi: Despite the weakness in the crypto cart, a newly launched token defies gravity to move higher, attempting to break past highs and scale new peaks.

Cosmos (ATOM), which launched in March 2019, has soared around 1,200 percent in less than three years to climb a high of $ 43.4 on January 5, 2022, from $ 3.4.

Simply put, Cosmos bills itself as a project that solves some of the ‘toughest problems’ facing the blockchain industry. Its goal is to offer an antidote to time-consuming, expensive, non-scalable, and environmentally damaging proof-of-work protocols.

In other words, it aims to offer an ecosystem of connected blockchains. It also tries to reduce the complexity of blockchain technology and ease for developers, thanks to a modular framework that demystifies decentralized applications.

Blockchain network interoperability is shaping up to be one of the top issues for the cryptocurrency ecosystem in 2022 as new-age investors continue to incorporate the growing crypto space.

“Cosmos is one of the leading protocols for interoperability and cross-chain capabilities. Virtually every smart cryptocurrency investor or trader talks about it, ”said Ganesh Kompella, venture partner at Tykhe Block Ventures.

In the last year, the token has delivered multibagger returns of more than 630 percent to investors. However, it was trading in the $ 40-41 range on Friday morning.

There are three key reasons supporting the strong price rally in the Comos price, including the launch of a cross-chain bridge, which makes the Ethereum Virtual Machine protocol compliant, and an upcoming Theta update.

The third reason for the upward momentum is the expansion of the ecosystem to 28 living and interconnected chains totaling more than $ 68 billion in total value. These include Binance Smart Chain, Terra (LUNA), and (CRO).

Echoing the similar tone, Raj A Kapoor, founder of India BlockChain Alliance, said that Cosmos aspires to be the ‘Internet of blockchains’ and has seen tremendous growth with more than 260 blockchain projects.

“More than $ 170 billion is secured by the Cosmos ecosystem, which also underwent a major update in March with the launch of the Inter-Blockchain Communication (IBC) protocol, which allows independent blockchains to connect to each other without permission to exchange data and value, “he added. .

Cosmos has surpassed crypto giants such as Algorand, Litecoin, Fantom, Tron, Decenterland, Internet Protocol, The Sandbox, and Axie Infinity to become the 21st largest crypto asset in terms of market capitalization.

Cosmos has a fully diluted market capitalization of just under $ 12 billion and there are a total of 226,226,027.65 ATOM tokens in circulation as of January 7, 2022.

Market experts said that with an experienced management team, a clear roadmap, and a solution to a major cryptocurrency problem, Cosmos has strong fundamentals.

The challenge is that it is often risky to buy immediately after a coin hits an all-time high, Kapoor warned. “It is possible that many speculative investors have raised the price in the hope of obtaining short-term gains.”

“I suspect that people will want to rotate their Bitcoin or Ethereum into altcoins,” warns Kompella, expecting the Cosmos to witness a strong rally in the coming weeks.


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