New Delhi: Despite weakness in the crypto cart, a newly launched token is defying gravity to move higher, attempting to break the previous highs and scale new peaks.
Cosmos (ATOM), which was launched in March 2019, has zoomed about 1,200 per cent in less than three years to scale a high of $43.4 on January 5, 2022, from $3.4.
In a nutshell, Cosmos bills itself as a project that solves some of the ‘hardest problems’ faced by the blockchain industry. It aims to offer an antidote to slow, expensive, unscalable and environmentally harmful proof-of-work protocols.
In other words, it aims to offer an ecosystem of connected blockchains. It also tries to reduce the complexity of the blockchain technology and ease for developers,thanks to a modular framework that demystifies decentralised apps.
Blockchain network interoperability is shaping up to be one of the main themes for the cryptocurrency ecosystem in 2022 as the new age investors continue to onboard growing crypto space.
“Cosmos is one the top protocols that’s interoperability and cross chain capabilities. Practically every smart crypto investor or trader talks about it,” said Ganesh Kompella, Venture Partner, Tykhe Block Ventures.
In the last one year, the token has delivered multibagger returns of more than 630 per cent to the investors. However, it was trading in the range of $40-41 on Friday morning.
There are three key reasons which are supporting the strong price rally in the price of Comos including the launch of a cross-chain bridge, which makes the protocol Ethereum Virtual Machine compatible and an upcoming Theta upgrade.
The third reason for the upward momentum is the ecosystem’s expansion to 28 live, interconnected chains that total more than $68 billion in total value. These include Binance Smart Chain, Terra (LUNA) and Crypto.com (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 major growth with over 260 blockchain projects.
“Over $170 billion are secured by the Cosmos ecosystem which also saw a major upgrade in March with the launch of the Inter-Blockchain Communication (IBC) protocol, allowing independent blockchains to connect to each other permissionless to exchange data and value,” he added.
Cosmos has raced past the crypto giants like Algorand, Litecoin, Fantom, Tron, Decenterland, Internet Protocol, The Sandbox and Axie Infinity to become 21st largest crypto asset in terms of marketcap.
Cosmos boasts a fully diluted marketcap of little less than $12 billion and there are a total 226,226,027.65 ATOM tokens in circulation as of January 7, 2022.
Market experts said that with an experienced management team, clear roadmap, and solution to an important cryptocurrency problem, Cosmos has strong fundamentals.
The challenge is that it’s often risky to buy in immediately after a coin hits an all-time high, warned Kapoor. “Many speculative investors may have just pushed the price up in the hope of short-term gains.”
“I suspect people will want to rotate their Bitcoin or Ethereum into altcoins,” cautions Kompella, expecting the Cosmos to witness a strong rally in the next few weeks.