After a dismal start to the week, the crypto market is surging once more. Altcoins like ATOM have also rallied with the interoperability token up a whopping 23.22% on the daily chart. This surge has served as a signal for investors to buy ATOM before it makes a new all-time high (ATH).
Given the growing interest in the protocol, more crypto enthusiasts want to know the project’s value proposition. This article covers all that and identifies if this is an ideal opportunity to buy ATOM.
Cosmos: Internet of Blockchains
The Cosmos project is one of the most ambitious interoperability protocols in the crypto universe. The team behind the Cosmos protocol labels it the most customizable, scalable, powerful, and interoperable ecosystem of interconnected blockchains.
The Cosmos protocol aims to solve age-long blockchain challenges of scalability, usability, and interoperability.
Powered by Tendermint and several Byzantine Fault Tolerant algorithms, Cosmos is a decentralized network of independent blockchains operating on top of the Cosmos Hub. The Cosmos Hub dubbed the ‘Internet of Blockchains,’ links other blockchains called zones allowing them to transfer data easily and securely amongst themselves seamlessly.
Like the Ethereum network, Cosmos enable the creation and deployment of decentralized applications (dApps) on its protocol. However, it differs a lot from the older dApps blockchain. The first is that Cosmos uses a proof-of-stake (PoS) consensus algorithm alongside its Tendermint BFT protocol.
Another differential factor is that Cosmos is developer-friendly compared to other dApps blockchains. Cosmos enables development teams to build atop its protocol with any programming language they are comfortable with. The Ethereum network, on the other hand, only supports the Solidity programming language for creating smart contracts on its virtual machine.
Aside from the Tendermint Core, which breaks the barrier between separate blockchains, the Cosmos protocol is also made up of the Cosmos SDK. The modular kit provides development teams with a basic blockchain framework and reduces complexity.
The Cosmos is built with a plug-and-play approach and handles the more difficult functionalities like governance, tokens, and staking. Developers get to add desired features as plugins. ATOM powers the Cosmos network and is used for staking and other blockchain-related activities.
ATOM: Making Steady Increase As The Bulls Return
The Cosmos network is one of the longest protocols in development with the project only launching officially in early 2020 after five years of research.
However, the protocol’s successful launch of the Inter-Blockchain Communication (IBC) Protocol in March this year shows the interoperability platform is looking to make good its promises.
This has seen over 250 dapps migrate to the network as the Ethereum network struggles with network congestion and high gas fees.
Meanwhile, the ATOM has continued to surge despite a dismal crypto atmosphere. ATOM hit an ATH of $44.46 on Sept. 20 even as landmark crypto Bitcoin struggled in the $42,000 region.
Although it has since shed some of the value, ATOM is still posting double digits and currently trades at $41.22, up 23.22%. This rally has seen several investors buy ATOM.
ATOM Technical and Fundamental Analysis
Looking at the ATOM trading chart shows strong bullish potential. The interoperability token is trading well above the short-term 20-day moving average (MA) support price of $32.16. If the bulls continue swaying the market in their favour, ATOM could see price resistance at the $55 mark over the weekend.
Relative strength index (RSI) figure of 61.33 reconfirms that investors are out to buy ATOM as the bulls look to regain control of the market.
On the fundamental front, the Cosmos network has blazed the trail for a number of popular cryptocurrencies, including BNB, Terra Luna, and Crypto.com’s CRO.
Also, the blockchain recently partnered with the co-processor of the Ethereum Virtual Machine (EVM), Sommelier, and Mysten Labs to increase the throughput of the Sommelier network. The collaboration will lead to the launch of smart contracts technology on the Cosmos ecosystem, given the growing need for decentralized finance (DeFi) services.