Cosmos (ATOM) Shoots Up 12% After Bitcoin And Ethereum Recover


The crypto market is showing signs of recovery and it seems that Cosmos has also moved in the same direction with a 12% increase in the last 24 hours.

Cosmos (ATOM), the 27e largest cryptocurrency, has a total market cap of $3.2 billion. ATOM, the token powering the Cosmos blockchain network, has gained a lot of traction with an increase of over 12.7% overnight.

Currently, ATOM is trading at the price of $11.45.

Recommended literature | Avalanche Crumbling Over 16% As Crypto Landslide Continues

ATOM stays in bear territory

While the charts looked bullish, ATOM is still in a bearish stance with trades plummeting 74% from its all-time high of $44.70 in September 2021.

There has been a noticeable spike in ATOM’s trading volume, which is evident across multiple exchanges. Total trading volume in the past 24 hours was approximately $327 million, which is an 11% increase from the previous day.

What is cosmos?

Cosmos refers to a decentralized network of blockchains run using the power of Byzantine fault tolerance algorithms (BFT).

In fact, Cosmos also enables developers to create and innovate their own blockchains, and allows Blockchains running on Cosmos to freely communicate or interact with each other.

Some of the major blockchains running in the Cosmos are the Terra, Kadena, and Thorchain.

Developer incentives after Terra .’s demise

Injective, a decentralized blockchain focused on developing decentralized Finance (DeFi) applications, has designed a proposal to create incentives for developers negatively impacted by Terra’s demise.

Injective is also responsible for adapting Ethereum compatibility and bringing it to the Cosmos IBC ecosystem, which has greatly helped Terra developers to quickly build applications using well-known tools.

Total Market Cap of ATOM at $3.16 Billion on the Weekend Chart | Source: TradingView.com

The Injective proposal came about on May 12 after the demise of Terra, with developers looking for opportunities to build projects elsewhere. The proposal was adopted within four days with a convincing 99% agreement with the initiative.

The entire Injective community was united when they decided to bend the incentives to ensure Terra dApps will have enough resources to facilitate a smooth transition to Injective participation.

Furthermore, CosmWasm, the emerging smart contract layer from Injective, is seen to be driving Terra projects to enable rapid onboarding without the need to rewrite codes, which could happen if they decided to move to other blockchains.

Recommended literature | Ripple (XRP) Struggling to Break the $0.45 Level, Down 16% in the Past 7 Days

Cosmos Network performs well

There are nearly 50 tokens and 28 InterBlockchain Communication (IBC) compliant blockchains running in the Cosmos.

More than that, there are also about 265 services and apps that power the Cosmos ecosystem, made up of wallets, blockchains, and explorers.

Kadena TVL was up 18% or $7.2 million in just 24 hours. Cronos’ TVL was up 2.16% or $2.32 billion in the past 24 hours.

Tokens in the cosmos plus DeFi activities are performing extremely well.

Meanwhile, the king of crypto has boosted its performance in the market. Bitcoin is up 4% in 24 hours and is now trading at $30,187.

Ethereum is also up 4.4% overnight with a current TVL of $2,026.

Featured image of Zipmex, chart of TradingView.com

Leave a Reply

Your email address will not be published.