In the times when blockchains are emerging to be an integral part of any business, they need to interact with each other called ‘Interoperability’. Cosmos is one such blockchain that intends to bridge the gap between these networks and unite them by using open-source tools. Instead of focusing more on the development of its blockchain, Cosmos aims to create an ecosystem of blockchains that can interact and share data without any involvement of a third party.
The Hub of blockchains, Cosmos, is powered by its native cryptocurrency ‘ATOM’ which amid extreme bearish sentiments maintained a notable uptrend. Currently hovering very close to its ATH, ATOM manifests an extreme bullish tendency to form new highs shortly. However, the bears also appear to be pretty strong, and hence a minor retracement is quite possible. And in such a case, will ATOM price smash $100 in Q1 2022? Let’s dive down below!
Introduction to Cosmos(ATOM)-In Brief!
Cosmos network was founded by developers Jae-Kwon and Ethan Buchman with the help of a Swiss-based non-profit organization, The Interchain Foundation(ICF). It is a decentralized network that is a coalition of independent & parallel blockchains. Cosmos which terms itself as the ‘Internet of blockchains’ or ‘Blockchain 3.0’ enables different blockchains to interact with each other in a decentralized manner.
The Cosmos ecosystem works on a Proof-of-Stake consensus mechanism using its native cryptocurrency ATOM. The crypto asset underwent a gigantic rally ever since it flipped the bearish divergence during the last few days of 2021. While most of the crypto assets like Bitcoin, Ethereum, Cardano, XRP, etc consolidated with narrow ranges, ATOM price jumped high being merely impacted by the negative market trend.
In the upcoming days, the Cosmos network is expected to roll out some exceptional upgrades which are believed to strengthen the network within the crypto space. And hence the network developments may positively impact the ATOM price in the upcoming days. Therefore a 3-digit target appears pretty clear for the asset, which may be in Q1 2022.
How Does Cosmos(ATOM) Work?
Cosmos is mainly built to be more scalable to process the transactions quickly and also being less expensive. And to connect various independent blockchains and establish a secure connection in between them, the Cosmos network consists of basically three layers.
Application: – This layer processes the transaction and updates the current state of the network.
Networking:- This layer allows the transactions and communications in between the blockchains
Consensus:- It helps the nodes to agree on the current state of the system
To bind all three layers with each other for smooth functioning of the application development on the blockchain, Cosmos uses some open-source tools.
Tendermint Byzantine Fault Tolerance(BFT)
The Tendermint BFT is the core of the network which allows the developers to build the blockchains without the need to build from scratch. It is an algorithm used to validate the transactions and add them to the blockchain. It works on a PoS mechanism that keeps a distributed network of nodes running on the network.
Cosmos Hub and Zones
Cosmos Hub is nothing but the first-ever blockchain built on the Cosmos network which was an intermediary between independent blockchains called ‘Zones’. Each zone is capable of carrying out its essential functions like authenticating accounts & transactions, creating & distributing new tokens. The Zones can also execute changes to their blockchain.
Inter-Blockchain Communication Protocol
Cosmos connects different zones using the Inter-Blockchain Communication Protocol which enables the transfer of data securely.
Cosmos SDK or the Cosmos Software Development Kit allows the developers to build blockchains using the Tendermint consensus algorithm. It intends to reduce the complexity by providing all the essential components that make a blockchain like staking, governance, tokens, etc). Developers can also create plugins and add any feature of their own choice.
Will Cosmos(ATOM) Price Hit $100 in 2022?
Cosmos(ATOM) price remained comparatively low-key since its inception. No doubt the asset attempted to surge during the mid-2020 but could not register large gains. However, since the beginning of the 2021 bull run, the ATOM price induced extreme bullish momentum and spiked beyond $30 quickly. However, phase-2 of the bull run escorted the price close to $45 and currently after undergoing a notable plunge, the price is yet again heading towards its ATH.
At the press time, the asset is just 10% distinct from its ATH and considering its price rally amid the recent slash, one can expect a remarkable bullish trend waiting ahead. With the current pace and strength, the Cosmos crypto price may barge in the highs in the upcoming week and continue to rally towards the $50 milestone.
Further undergoing a notable rally the asset could hit levels close to $100 before the end of 2022. And with an extended bull rally, the ATOM price may also close the yearly trade beyond the $150 price zone. Yet if a bearish trend prevails, the asset may undergo an interim plunge, yet is strong enough to close the yearly trade on a bullish note.
|Year||Potential High||Potential Low|
|Next 5 Years||$200||$178|
Factors Impacting Cosmos(ATOM) Price Today!
The Cosmos network is built to bridge the gap between independent blockchains and hence ensures a secure connection between them. Unlike many other platforms which use Smart contracts to carry out any transactions, Cosmos uses Hubs to allow blockchains to communicate.
Thriving Network of Apps
Network adoption is the most important phase of any cryptocurrency development and for this reason, more than 220 applications currently run on the Cosmos network. The prominent players like Binance smart chain, Crypto.com, etc also run their Apps on Cosmos.
Promising Upgrades & Developments in 2022
Cosmos network is working on huge developments which could escalate the ATOM price shortly. Cosmos is an inch close to becoming EVM-compatible by launching a Gravity Bridge. Further, it is preparing for the Theta upgrade to enter the world of NFT’s. And lastly, the ecosystem is expanding its connection with 28 live and interconnected chains.
ATOM More as a Utility Token
ATOM other than being a native token is used as a spam-prevention mechanism, a staking token and also as a governance token.
Where & How to buy Cosmos(ATOM)
Cosmos(ATOM) is a popular token and is widely available for trade on major platforms including CoinDCX. CoinDCX is India’s most trusted cryptocurrency exchange and also the country’s first Unicorn. Here, you can not only enjoy faster trades at affordable prices but also unlock additional features at no additional costs.
To start with the new yearly trade with a bash, CoinDCX is all set to upgrade to CoinDCX Pro with more advanced features. Along with hassle-free trades at affordable rates, one can enjoy faster order placements, unlimited access to charts with indicators, brand new design, etc. All you need to do is, download the CoinDCX mobile App and register following a very few simple steps.
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