On Monday, Cosmos (ATOM/USD) prices soared as investors factored in increased demand for its ecosystem. ATOM, the native token, is currently trading at $31.30, its highest level since November 28. This has risen more than 24% from its lowest point earlier this month.
ATOM continues to grow
Cosmos is a blockchain-based Inter-Blockchain Communications (IBC) technology that is one of the fastest growing. Other decentralized platforms can communicate with each other thanks to the network.
Many blockchain projects have now made the switch to the network. More specifically, the ecosystem presently has hundreds of applications. Billions in assets are managed by these networks.
Binance, Crypto.com, ThorChain, and Secret are some of the tokens that have joined the Cosmos ecosystem.
ZCash, the fast-growing Privacy Coin, is the most recent addition to the ecosystem. ZCash will benefit from faster speeds and increased cross-chain interoperability by migrating to Cosmos. Terra and Forte are two other cryptocurrencies that have migrated to Cosmos.
ATOM, the Cosmos ecosystem’s native coin, safeguards all actions. Through its governance, ATOM contributes to the network’s security.
Holders of the token can also cast votes on the network’s future. Most importantly, they can receive prizes by using the coins. ATOM’s average annual percentage yield (APY) is around 9.7%. Transaction fees and freshly produced ATOMs are used to deliver these benefits to holders.
Cosmos price prediction
The daily chart shows that the ATOM price has been in a strong upward trend in recent months. In fact, the price rose by more than 480% between mid-July and September. Recently, however, this upward trend has subsided and the price of the coin has moved sideways.
Cosmos prices dropped to their lowest level since September 11 just last week. This occurred as the price went below a key support level of $32.72, which was the previous all-time high. The coin’s price is currently fluctuating around this mark.
However, a closer examination reveals that the price of ATOM formed a double-top pattern between $44.25 and $32.72. As a result, this rise is likely to be a “dead cat bounce,” with the price returning to its downward trend in the coming weeks.