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

189
SHARES
1.5k
VIEWS


Blockchain community interoperability is shaping as much as be one of many predominant themes for the cryptocurrency ecosystem in 2022. New customers are persevering with to onboard into the rising world of crypto whereas each new and established initiatives seek for the chain that can greatest serve the wants of their protocol and neighborhood. 

One venture that has 2022 off to a bullish begin due to its concentrate on facilitating the communication between separate networks is Cosmos (ATOM). This venture payments itself as “the web of blockchains” and seeks to facilitate the event of an interconnected decentralized economic system.

Related articles

Knowledge from Cointelegraph Markets Pro and TradingView reveals that since hitting a low of $25.06 on Dec. 30, the worth of ATOM has rallied 75% to hit a every day excessive at $43.98 on Jan. 4 as its 24-hour buying and selling quantity spiked to $2.54 billion.

ATOM/USDT 1-day chart. Supply: TradingView

Three causes for the surging worth of ATOM embody the launch of a cross-chain bridge which makes the protocol Ethereum Digital Machine (EVM) appropriate and an upcoming Theta improve which can quickly increase the ecosystem of linked chains and purposes.

Cosmos nears EVM compatibility

Essentially the most vital improvement that has offered a lift to ATOM is the rollout of Evmos, an EVM-compatible protocol that can permits property and initiatives that function on the Ethereum (ETH) community emigrate over to the Cosmos ecosystem.

Up so far, there had not been a manner for Ethereum-based initiatives to work together with the Cosmos ecosystem. This considerably restricted the variety of initiatives and tokens that might work together with DeFi and NFT initiatives within the Cosmos ecosystem.

Gravity Bridge, which launched on Dec. 15, is one other venture devoted to facilitating the bridging of property between Ethereum and Cosmos and at present it operates as a standalone chain. Plans emigrate to the Cosmos Hub in early 2022 are at present underway.

Making ready for the Theta improve

A second improvement that has put wind within the sails of Cosmos is the protocol’s upcoming Theta improve which is scheduled for March 31.

A number of the new options included within the improve embody the addition of meta-transactions, the place transactions could be submitted by separate accounts that obtain suggestions and the introduction of inter-chain accounts which permit customers to handle accounts throughout a number of blockchains. One other characteristic is liquid staking, a system the place customers make the most of the worth of staked property in different elements of the Cosmos ecosystem.

The Theta improve additionally contains NFT modules, which allow the straightforward administration of NFT identifiers, their homeowners and related knowledge.

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

Increasing ecosystems are sometimes bullish

A 3rd cause for the bullish momentum of ATOM is ecosystem’s enlargement to twenty-eight reside, interconnected chains that whole greater than $68 billion in whole worth.

A number of the extra established chains which have joined the Cosmos ecosystem embody the Binance Good Chain, Terra (LUNA) and Crypto.com (CRO), whereas the most important initiatives utilizing Cosmos’ software program improvement package (SDK) embody Osmosis (OSMO), Secret (SCRT), Oasis Community (ROSE) and Kava (KAVA).

Because the bridge protocols linking Cosmos with different EVM-compatible networks are established, the variety of chains linked to the Cosmos Hub is prone to enhance. It will deliver a rise within the whole worth of the ecosystem together with it.

VORTECS™ knowledge from Cointelegraph Markets Pro started to detect a bullish outlook for ATOM on Dec. 29, previous to the latest worth rise.

The VORTECS™ Rating, unique to Cointelegraph, is an algorithmic comparability of historic and present market circumstances derived from a mix of information factors together with market sentiment, buying and selling quantity, latest worth actions and Twitter exercise.

VORTECS™ Rating (inexperienced) vs. ATOM worth. Supply: Cointelegraph Markets Pro

As seen within the chart above, the VORTECS™ Rating for ATOM started to select up on Dec. 28 and climbed to a excessive of 81 simply as the worth started to extend 67% over the subsequent six days.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you need to conduct your individual analysis when making a call.