Cosmos (NASDAQ:ATOM) gained approximately 13% in 24 hours, one of the few leading cryptos in the green this morning. The price has increased by over 2% in the past week and about 15% in the past 30 days. However, CoinMarketCap reports that the value of Bitcoin (BTC) and Ethereum (ETH) has dropped by over 10% and 13% during the past week.
The reason why Cosmos is doing well
There seems to be no one factor contributing to Cosmos’s recent success. At the same time, Cosmos (NASDAQ:ATOM) has gained steam thanks to various causes.
Positive Financial Forecasts
VanEck, a global investment management firm, has released an upbeat assessment of Cosmos’s prospects over the next few years. It lauded Cosmos (NASDAQ:ATOM) for its ability to securely bridge several blockchains, a significant challenge in the crypto space. Numerous blockchains function in isolation, making cross-chain communication problematic. Cosmos (NASDAQ:ATOM) is an example of an interoperability crypto that deals with this problem.
Since Cosmos (NASDAQ:ATOM) has “better technology,” VanEck believes that more than 5,000 blockchains will be created on its network by 2030. According to the paper, the ATOM token issued by The Cosmos Hub is in a “premier position to capture a considerable share of the value of the public blockchain market,” and its price should rise accordingly.
Security for the Internet is on the horizon.
Something termed “internet security” received particular emphasis in the VanEck study. The Cosmos Hub can be used to protect blockchains developed within the Cosmos ecosystem. Instead of relying on its own token and chain, which are likely less mature, a new blockchain can use the existing ATOM-backed blockchain to validate itself. The Cosmos plan indicates that the initial launch of internet security will occur soon.
Word on the market about Defi
Finally, there is talk on social media about how some Terra (LUNA) ecosystem projects might be migrated to the Cosmos (NASDAQ:ATOM) environment. More than one cryptocurrency designed for smart contracts is vying for use on Terra. It has been speculated that some decentralized financial developers would relocate their operations to Terra because it was constructed utilizing Cosmos (NASDAQ:ATOM) technology. Other blockchains, such as Polygon (MATIC), have introduced incentive funds to compete with LUNA.
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