The Cosmos price has rebounded in the past two straight days as investors reflect on the strong success of its ecosystem. ATOM, its native token, is trading at $25.15, which is about 25% above the lowest level this month. As a result, the coin’s market capitalization has risen to about $7.1 billion, making it the 26th biggest cryptocurrency in the world.
What is Cosmos crypto?
The blockchain industry has seen remarkable growth in the past few years. During this period, we have seen the emergence of multiple chains, of which Ethereum is the biggest ones. Ethereum has a market share of more than 80% in the development of key assets in the industry.
While the blockchain industry is doing well, there is a major challenge in how platforms interact with one another. This means that Ethereum-built apps find it difficult to interact with those built using other platforms like Binance Smart Chain (BSc) and Solana.
A number of solutions have been developed to solve this challenge. These solutions are known as bridges. This is where Cosmos comes in.
Cosmos is an ecosystem of blockchains that can scale and interact with each other. It is powered by the Tendermint Byzantine Fault Tolerance (BFT) technology. Applications connect to the network using a socket known as the Application Blockchain Interface (ABCI). ATOM is the native token for the network.
Today, there are more than 200 apps that are connected to the Cosmos ecosystem. Some of the top tokens that are in the ecosystem are Binance Coin, Terra, Crypto.com Coin, and OkExChain. Within its ecosystem, some of the biggest platforms in Cosmos are the Anchor Protocol, Band Protocol, and Astro Canvas, among others. In total, these apps have a total value locked (TVL) of more than $250 billion.
It is still unclear why the Cosmos price has jumped but analysts cite the strong growth of Terra. In the past few days Terra has jumped to an all-time high while its total market cap has jumped to more than $34 billion.
Cosmos 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 at $28.73. The coin managed to drop below this chin in November. 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). It is now attempting to retest the chin.
Therefore, there is a likelihood that the coin will likely have a bearish breakout since it has formed a break and retest pattern. This breakout will be confirmed if the price moves below this month’s low at $20.
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