crypto: Cosmos is beating crypto weakness to scale new highs! Does this rally have more legs?

New Delhi: Despite the weakness in the crypto bandwagon, the newly launched token is defying gravity to move higher, trying to break past highs and extend new highs.

Cosmos (Atom), which was launched in March 2019, is up nearly 1,200 percent in less than three years to $43.4 on January 5, 2022, from $3.4.

In short, Cosmos describes itself as a project that solves some of the “hardest problems” facing the blockchain industry. It aims to offer an antidote to slow, expensive, non-scalable, and environmentally damaging Proof of Work protocols.

In other words, it aims to offer an ecosystem of connected blockchains. It also attempts to reduce the complexity and ease of use of blockchain technology for developers, thanks to a modular framework that demystifies decentralized applications.

The interoperability of the Blockchain network is shaping up to be one of the main themes for the cryptocurrency ecosystem in 2022 as new era investors continue to develop the growing crypto space.

“Cosmos is one of the best protocols that offers interoperability and cross-chain capabilities. Practically every savvy cryptocurrency investor or trader is talking about it,” said Ganesh Kumbila, project partner, Tykhe Block Ventures.

In the past year, the token has delivered multi-tick returns of over 630 percent to investors. However, it was trading in the $40-41 range on Friday morning.

Three main reasons support the strong price hike for Comos including the launch of a cross-chain bridge, making the Ethereum Virtual Machine protocol compatible and the upcoming Theta upgrade.

The third reason for the upward momentum is the expansion of the ecosystem into 28 live, interconnected chains with a combined total value of more than $68 billion. These smart chains include Binance, Terra (LUNA), and (CRO).

Echoing a similar tone, Raj Kapoor, founder of the India BlockChain Alliance, said Cosmos aspires to be the ‘internet of blockchains’ and has seen significant growth with more than 260 blockchain projects.

He added, “Over $170 billion secured through the Cosmos ecosystem which also saw a major upgrade in March with the launch of the Inter-Blockchain Communication (IBC) protocol, allowing independent blockchains to communicate with each other without permission to exchange data and value.”

Cosmos has surpassed crypto giants such as Algorand, Litecoin, Fantom, Tron, Decenterland, Internet Protocol, The Sandbox and Axie Infinity to become the 21st largest crypto asset by market size.

Kosmos boasts a fully diluted capital of just under $12 billion and there are a total of 2,262,226,027.65 ATOM tokens in circulation as of January 7, 2022.

Market experts said that with an experienced management team, a clear roadmap and a solution to an important crypto issue, Cosmos has solid fundamentals.

The challenge is that buying is often risky once the currency reaches all-time highs, Kapoor warned. “Many speculative investors may have pushed the price higher in the hope of short-term gains.”

“I suspect people will want to convert their bitcoin or ethereum to altcoins,” Compella warns, anticipating that Cosmos will see a strong rally in the next few weeks.