important point
- Cosmos’ ATOM token is trading at $12.72 after Thursday’s surge. It’s up more than 40% in the last 30 days.
- Evmos, Osmosis and JUNO also rose following the latest market rally.
- Cosmos bills itself as the “Internet of Blockchains” that allows individual blockchain networks to communicate with each other.
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Cosmos’ ATOM token is up 40.6% over the last 30 days.
Cosmos ecosystem outperforms the market
The Cosmos ecosystem is booming.
Several tokens associated with ‘Layer 0’ networks rallied on Thursday, following a market-wide rally led by top-two cryptocurrencies Bitcoin and Ethereum.
according to CoinGecko dataCosmos’ ATOM token is up 7.6% over the last 24 hours, extending its rally of 40.6% over 30 days. It is currently trading at $12.72. Evmos, a bridge project leveraging Cosmos’ Inter-Blockchain Communication protocol to connect ecosystems to Ethereum, is up 21.1% and is currently trading at $2.80. Other Cosmos projects, such as Osmosis and JUNO, are even higher than many other major assets over the past 24 hours, registering modest gains of 3.8% and 3.5%.
There is no clear reason behind the ecosystem’s surge, but ATOM’s gains over several weeks amid improving market sentiment could be a big factor. When a blockchain network’s native token gains market attention at a rally, other projects within the same ecosystem tend to benefit. Base layer blockchains are usually the most valuable in a given ecosystem and therefore tend to be less volatile. As a result, when interest in the ecosystem grows, projects with lower market caps can often outperform (in contrast, when the trend reverses, smaller tokens tend to bleed harder).
2021 “Internet of Blockchains”
Cosmos positions itself as the “Internet of Blockchains”, acting as a hub connecting multiple separate blockchain networks. As such, it is known as “Layer 0”, similar to Polkadot, rather than Layer 1 networks such as Ethereum and Solana that serve as the base chain for building applications. Cosmos differentiates itself from other similar projects by adopting a shared security model that bootstraps new blockchains and allows them to interact with each other within a single ecosystem.
Cosmos has been in development for several years, and while the 2021 bull market has seen some gains in many other key projects, many layers have benefited from growing interest in NFTs and yield farming. I was behind on one project. ATOM peaked at $44.45 in January 2022 but failed to capture the mindshare of the cryptocurrency community much like Solana, Avalanche, and now collapsing.Ed Terra did. Even after today’s ascent, we still have a long way to go back to peak. At $12.72, it is about 71.3% below its all-time high.
Disclosure: At the time of writing, the author of this work owned ATOM, ETH, and several other cryptocurrencies.
