Trading Signals 05/02 – 09/02
Overview of the Cosmos (ATOM) cryptocurrency
Constantly expanding, the Cosmos ecosystem is positioned as the “Internet of Blockchains.” Blockchains launched on the Cosmos Network can interact with each other through the foundational Cosmos Hub blockchain using the Inter-Blockchain Communication protocol (IBC). As of today, there are 249 decentralized applications running on the Cosmos network, with a total market capitalization of the launched blockchains exceeding 70 billion dollars.
The main feature of the Cosmos Hub blockchain is its cross-chain solutions, enabling any blockchain within the Cosmos ecosystem to interact with each other and with external networks like Ethereum and Bitcoin.
Creating the Cosmos Cryptocurrency
Let’s go back to history. The ATOM token ICO took place in April 2017. The public sale round concluded in less than 30 minutes, selling 75% of the total issuance (at that time) and raising over $17 million. The token price during the ICO was 10 cents.
Currently, the price of the ATOM coin is around $10, experiencing an increase of over 11,34% since the closed sales. Today, the project ranks among the top 50, with a market capitalization exceeding $3,475,520,258.
The ATOM token has an approximate annual emission rate of 10%, and there are currently 346,608,690 coins in circulation.
Projects Built on Cosmos and its Decentralization
Before delving into what Cosmos is and how it works, it’s worth mentioning the blockchains that are already launched on its infrastructure and utilize its network. Among them are Binance Smart Chain, qredo, crypto.com, Sandblock Chain, Klever Wallet, and OKExChain. These projects are widely recognized in the industry and are operating successfully.
Cosmos stands out as a highly decentralized blockchain, which is evident from the significant number of validators and the amount of tokens staked in support of these validators. With over 100 active validators in the Cosmos network, the largest one being Binance staking, it commands a mere 7% share. This implies that the majority of validators, essential for maintaining network functionality, hold even smaller portions of the overall stake.
The ATOM coin serves as a governance token, empowering its holders to vote and determine the project’s direction according to their preferences. Thanks to the decentralized distribution of tokens, these voting processes are transparent. The platform has successfully conducted over 50 such governance votes, allowing the community to actively participate in shaping the project’s development.
Why is Cosmos Blockchain 3.0?
Now let’s see how Cosmos is structured and what it consists of. First and foremost, it is a blockchain that enables the interoperability of different blockchains. Cosmos allows for the swift creation of decentralized applications or the launch of new blockchains with minimal costs, while also facilitating interactions with other blockchains within the ecosystem (Interchain) and external blockchains through decentralized bridges.
Cosmos is considered a blockchain 3.0, and here’s why: it was designed to address scalability issues, enhance usability, and overcome the limitations of developers being restricted to a single network. Open-source tools such as Tendermint and Cosmos SDK empower developers to rapidly build secure, scalable, and compatible blockchain applications, freeing them from constraints on interactions both within and outside the network.
For instance, a blockchain built on the Tendermint core can interact with the Ethereum blockchain, which is not part of the Cosmos ecosystem. Tendermint serves as the core that interfaces with the Application Blockchain Interface (ABCI), enabling the creation of applications in various programming languages. By building a blockchain on the Tendermint core, developers can focus on their own products without worrying about consensus and security, developing applications in their preferred programming language.
Is it a good time to invest in Cosmos (ATOM)?
ATOM (Cosmos) has been identified by analysts as one of the most promising cryptocurrencies to invest in during 2023.
The cryptocurrency undoubtedly possesses long-term potential. Let’s study the current market situation using technical analysis. This step is crucial because cryptocurrency trends are constantly evolving, and it is important to consider optimal timing for purchasing assets.
According to the latest data as of July 12, 2023, inflation (CPI) in the United States has decreased to 3% on an annual basis. This has eased investors’ expectations regarding the duration and aggressiveness of the Federal Reserve’s interest rate hikes, subsequently weakening the American currency. As a result, all risk assets, including cryptocurrencies, have been raised.
On the chart, it can be observed that ATOM has rebounded from the support level of $9.00 and reached a strong historical resistance level of $10.21. The price movement has shown significant momentum; however, after such jumps, a correction is typically expected. It is likely that the asset will find support at the $9.64 level before making another attempt to break the $10.21 level. If the cryptocurrency successfully surpasses this level, the next targets will be $10.83 and $11.28.
Where to buy ATOM cryptocurrency?
To acquire the cryptocurrency ATOM, there are various options with their respective advantages and disadvantages. These options differ in terms of price, associated fees, and level of complexity. However, one of the most recommended approaches to purchase ATOM is through cryptocurrency trading exchanges. These exchanges provide the most favorable exchange rates as they attract a large number of buyers and sellers. Here are a few of the most popular cryptocurrency exchanges frequently utilized by traders:
Cosmos is positioned as one of the most innovative cryptocurrency platforms, poised to play a crucial role in the decentralized Internet. It offers a wide range of compelling solutions for launching and rapidly scaling blockchain projects, continuously improving through regular voting processes. The ATOM cryptocurrency enjoys popularity among traders and provides an annual staking yield of approximately 20%. There might be a significant price growth due to a notable decrease in inflation.