The central theses
- Cosmos’ ATOM token is trading at $12.72 after a surge on Thursday. It’s up over 40% in the last 30 days.
- Evmos, Osmosis and JUNO have also rallied on the recent market rally.
- Cosmos bills itself as the “Internet of Blockchains,” allowing individual blockchain networks to communicate with each other.
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Cosmos’ ATOM token is up 40.6% over the past 30 days.
The Cosmos ecosystem outperforms the market
The Cosmos ecosystem is booming.
Several tokens linked to the “Layer 0” network rallied on Thursday after a market-wide rally led by the top two cryptocurrencies, Bitcoin and Ethereum.
According to CoinGecko data, Cosmos’ ATOM token is up 7.6% over the past 24 hours, continuing a rally that saw it rise 40.6% in 30 days. It is currently trading at $12.72. Evmos, a bridge project that uses the Cosmos inter-blockchain communication protocol to connect the ecosystem to Ethereum, is up 21.1% and is currently trading at $2.80. Other Cosmos projects like Osmosis and JUNO have posted modest gains of 3.8% and 3.5%, respectively, despite gaining more than many other major assets over the past 24 hours.
While there is no clear reason for the ecosystem’s surge, ATOM’s week-long surge amid an improvement in market sentiment is likely a key factor. Whenever a blockchain network’s native token catches the market’s attention with a rally, other projects within the same ecosystem typically benefit. Since base layer blockchains tend to have the most value in a given ecosystem, they tend to be less volatile. As a result, smaller-cap projects can often outperform as interest in the ecosystem grows (contrastingly, smaller tokens tend to bleed more when the trend reverses).
“The Internet of Blockchains” in 2021
Cosmos markets itself as “the internet of blockchains” and acts as a connection hub for multiple separate blockchain networks. For this reason, it’s known as “Layer 0,” much like Polkadot, rather than Layer 1 networks like Ethereum and Solana, which serve as backbones for applications to build on. Cosmos differs from other similar projects by introducing a common security model that helps bootstrap new blockchains and allows them to interact with each other within an ecosystem.
Although Cosmos has been in development for several years and saw some upside on many other key projects in the 2021 bull run, it has lagged behind many Layer 1 projects that have benefited from growing interest in NFTs and yield farming. ATOM peaked at $44.45 in January 2022, but it failed to capture the opinion of the crypto community in the same way as Solana, Avalanche and the now collapsingEd Terra did. Even after today’s rally, there is still a long way to go before he reaches his peak. At $12.72, it is about 71.3% off its all-time high.
Disclosure: At the time of writing, the author of this article owned ATOM, ETH, and several other cryptocurrencies.
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