Cosmos price has rebounded for the past two straight days as investors ponder the strong success of its ecosystem. ATOM, its native token, is trading at $ 25.15, which is about 25% higher than this month’s lowest. As a result, the market capitalization of the coin has grown to around $ 7.1 billion, making it the 26th largest cryptocurrency in the world.
What is Cosmos Crypto?
The blockchain industry has seen remarkable growth in recent years. During this time we have seen several chains emerge, the largest of which is Ethereum. Ethereum has more than 80% market share in developing key industry assets.
While the blockchain industry is doing well, one big challenge is how platforms interact with each other. This means that apps made by Ethereum have a hard time interacting with those made on other platforms such as Binance Smart Chain (BSc) and Solana.
A number of solutions have been developed to address this challenge. These solutions are called bridges. This is where cosmos comes into play.
Cosmos is an ecosystem of blockchains that can scale and interact with each other. It is powered by Tendermint Byzantine Fault Tolerance (BFT) technology. Applications connect to the network through a socket known as the Application Blockchain Interface (ABCI). ATOM is the native token for the network.
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Today more than 200 apps are connected to the Cosmos ecosystem. Some of the most important tokens in the ecosystem are Binance Coin, Terra, Crypto.com Coin, and OkExChain. Within its ecosystem, some of the largest platforms in Cosmos include the Anchor Protocol, Band Protocol, and Astro Canvas, among others. Overall, these apps have a Total Value Locked (TVL) of more than $ 250 billion.
It’s still unclear why the Cosmos price went up, but analysts cite Terra’s strong growth. In the past few days, Terra has risen to an all-time high while its total market cap has grown to more than $ 34 billion.
Kosmos price prediction
The daily chart shows that the ATOM price formed a double top pattern at $ 45.7 between September and October. The chin of this double-top was $ 28.73. In November, the coin managed to fall under that chin. In price action analysis, a double top pattern is usually a bearish signal.
The Cosmos price moved below the 25-day and 50-day moving averages (MA). An attempt will now be made to test the chin again.
Hence, chances are the coin is likely to experience a bearish breakout as it has formed a break-and-retest pattern. This breakout will be confirmed if the price drops below the $ 20 monthly low.
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