ATOM/USD Technical Analysis
About Cosmos (ATOM)
The crypto-currency Cosmos (ATOM) powers a decentralized blockchain network using what is known as the Inter-Blockchain Communication protocol and it operates on a proof-of-stake chain. The Cosmos blockchains are designed to work, communicate, and scale with one another. As ATOM holders invest or stake their tokens, they are keeping the network going and are rewarded with more ATOM coins. Cosmos also works with Coinbase to issue ATOM rewards.
Cosmos was designed to handle some of the toughest blockchain problems, speeding up the way blockchains work and offering an alternative to plodding, costly, proof-of-work protocols. The connected blockchain ecosystem provided by Cosmos gives people an alternative to the kind of ecosystem Bitcoin uses.
The proprietary coin of the Cosmos protocol is also called Cosmos (ATOM), and it is used as a reward for those who contribute to the Cosmos ecosystem. Even though Cosmos is only the 41st ranked cryptocurrency, the technology behind it gives it long term viability and the potential to substantially move up the ranks over time.
The Cosmos blockchain is all about making decentralized applications faster and cheaper. It works with decentralised exchanges, NFT (non-fungible token) marketplaces, and more. The Cosmos ecosystem attempts to unite fragmented blockchain systems.
Cosmos has a market cap of $2,525,349,428.38 with a trade volume in the hundreds of millions. It makes up about .17% of the cryptocurrency market competing against hundreds of other cryptos for dominance.
When used as a staking token, the Cosmos token’s value can be used to offset the losses associated with inflation. This staking token can only be used like this in the Cosmos Hub, but when used as a cryptocurrency, the value of the token can change erratically. Rewards are provided to Cosmos users by creating new tokens and boosting the total supply of tokens available.
On the Cosmos Hub, users that don’t stake tokens are essentially punished, but the token can be used to trade with other cryptocurrency and changed out for fiat currency on some exchanges.
Cosmos started out as Tendermint, created by Zarko Milosevic, Jae Kwon, and Ethan Buchman. The board of directors for Cosmos has changed since the launch of Tendermint in 2014. Cosmos had an initial coin offering in 2017, reaching their goal in less than 30 minutes. The proof of stake operation was tested on a major scale in 2018, and then by early 2019 official mainnet for Cosmos was launched.
By March of 2019, the Cosmos rate had reached $7.5044 (ATOM/USD), but then it never reached any higher than that until August 2020. That $7 USD resistance level is very difficult for Cosmos to break through until 2021. In January 2021, the ATOM rate shot past the $7 mark and has stayed above the $9 level since February 2021.
The Cosmos price peaked on May 7th at $29.44, but it didn’t last long. The bears got hold of the crypto and it plummeted to $12.24 on May 21st. It has evened out a bit since then, staying around the $12 level.
Cosmos has continued to stay relevant because of its unification protocols that bring blockchains together. Multiple parties benefit from this technology, and it helps app users to thrive.
Cosmos Price Factors
What affects the Cosmos rate? Looking at the Cosmos chart on how the price has changed over the years, the rate is much higher now than it was in 2020 or 2019. There are a few different factors that have affected the Cosmos rate, and these are factors potential investors need to know about before buying ATOM tokens.
The biggest reason Cosmos managed to take off in 2021 is because the economy started to recover from the coronavirus then. With stimulus checks being pumped into the US economy and other major economies, as well as an overall reopening of businesses worldwide, the cryptocurrency market simply exploded. People with disposable incomes and extra cash from the stimulus checks started to try investing in overlooked cryptos like Cosmos that have the potential to really break out.
Cosmos did exactly that in 2021 as the bulls got ahold of it and the ATOM price skyrocketed.
The Cosmos price has also changed as more companies, developers, and apps use its blockchain communication technology. There has always been a lot of promise for this technology, but it needed adopters to start to see some mainstream success. It works with Ethereum, Terra (LUNA) and BNB among others, helping them succeed as it proves its long-term viability.
Cosmos is available on multiple cryptocurrency exchange platforms, including Binance, which is the preferred cryptocurrency exchange for much of the world. It is also available on Coinbase, Kraken, and others.
When considering an investment in Cosmos or any other cryptocurrency, potential investors need to be aware of the risk of volatility. Cryptocurrencies are inherently erratic, changing from bearish to bullish behavior very quickly and unexpectedly. It is easy to lose a large investment quickly, and the high level of risk is why it is so vital for potential investors to use proven cryptocurrency investment and tracking tools.
They can make use of the Cosmos chart and other powerful analytical tools on FX Leaders. Investors should also keep up with news stories and current events that could affect the ATOM price, as this can help them determine where the rates may go and when it may be a good time to buy or sell this cryptocurrency.
If Cosmos gains more popularity, it can end up listed on more cryptocurrency exchanges and may be accepted by major finance platforms like PayPal, RobinHood, and more.
ATOM/USD - FAQs
Cosmos is a connected ecosystem of blockchain networks called an “Internet of Blockchains”. As a network, Cosmos helps blockchains communicate with one another more efficiently, improving transactions and data sharing. The cryptocurrency token Cosmos is used within the Cosmos Hub as well as traded with other cryptocurrencies.
Because Cosmos is one of the more popular cryptocurrencies, it's not difficult to find a cryptocurrency exchange that allows investors to trade it. Cosmos is available on Kraken, Coinbase, Binance, and other major cryptocurrency exchanges as well as directly from the Cosmos Hub.
Cosmos (ATOM) Can be stored in a digital wallet kept on your desktop or mobile device. This is called an Atomic wallet, and it is a storage location provided by the Cosmos ecosystem. To store ATOM over a long period of time, you may want a hardware wallet that provides offline cold storage. This prevents hacking and makes it difficult for anyone to access or steal your cryptocurrency.
Storing cryptocurrency does not protect the value from changing. The Cosmos price may have greatly increased or fallen by the time you access your token and traded from the wallet.
Cosmos can be used to stake tokens on the Cosmos Hub for a future investment. It can also be traded on cryptocurrency exchanges for other crypto coins or cashed out for fiat currencies on some exchanges. There is a limited number of ways to use Cosmos without changing it into a different, more widely used currency.
Cosmos is legal to trade, buy and sell throughout the world except in a few select countries. China, Colombia, Ecuador and a few other countries completely prohibit the buying and selling of cryptocurrency of any kind, including Cosmos. Russia allows crypto as an investment but not as a form of currency.
The regulations for cryptocurrency could change in the near future as more countries adopt laws for this kind of currency.
The only regulation that exists in the UK for Cosmos is in regards to money laundering. However there are laws being developed that could affect UK regulations of cryptocurrency in the near future.
Any cryptocurrency comes with risk involving volatile rates. The Cosmos price can change unexpectedly, and economic factors can have a huge impact on the value of any cryptocurrency you are holding.