Bitcoin has fallen back to earth this winter, with a steep 18% drop since December 27th. Meanwhile Cosmos crypto (ATOM) crypto achieved lift-off and the escape velocity necessary to break away from the strong gravitational pull of BTC. In fact, Cosmos has gained a solid 64% since the 10th of December.. Many are wondering why ATOM’s price has skyrocketed while the broader crypto market is slumping.
CoinTelegraph discusses three key reasons for Cosmos‘ sudden increase in value:
The most significant development that has provided a boost to ATOM is the rollout of Evmos, an EVM-compatible protocol that will allow 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 decentralized finance (DeFi) and nonfungible token (NFT) projects in the Cosmos ecosystem.
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 are 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.
A third reason for the bullish momentum of ATOM is the ecosystem’s expansion to 28 live, interconnected chains that total more than $68 billion in total value.
There are a few different trends that are currently working in the favor of Cosmos crypto. The market has responded not only with a solid price increase, but with a massive amount of new volume (+10x) from early December. New upgrades and additions to existing ecosystems tend to drive cryptocurrency prices higher. August 2 through September 2, 2021, Cardano’s price exploded from $1.36 to $2.96, a 217% jump, on the hype surrounding their Alonzo hard fork upgrade and the Cardano Summit. We could see Cosmos ride their new narratives to all-time highs by summer.
Full Disclosure: We have a small position (~1% of portfolio) currently in Cosmos.
Interested in purchasing Cosmos? ATOM is now available for purchase on OKCoin.
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